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Empirical Research On Net Capital Monitoring Effect Of Chinese Trust Company

Posted on:2016-12-24Degree:MasterType:Thesis
Country:ChinaCandidate:A L ZhangFull Text:PDF
GTID:2309330473461793Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Trust Industry has undergone four phases and six rectifications during the past three decades’development full of frustrations. With the promulgation and application of one law two rules, trust industry is in a rapid developing stage since 2002. Total assets of trust industry are less than 100 billion from the end of 2003, and it is nearly 11 trillion to the end of 2013. Trust industry becomes the second pillar of our country’s financial sector which has surpassed the securities industry and insurance industry. However, with rapid development of the trust, high risks increase. The risks do serious damage to the interests and development of trust company. The China banking regulatory commission issued the trust company’s net capital management approach to make trust company retain plenty high liquidity inherent assets. It aims to make up the loss of trust businesses and control risks. The model of net capital-economic capital is established in this paper according synergetic. It has vital practical significance to improve risk management level of trust company, reduce the risk loss and guarantee the benefit of investors. Meanwhile, it has reference significance to study the implementation effect of net capital supervision in Chinese trust company.Sample object is the complete net capital data of 28 trust companies in this paper. This paper is divided into five chapters. The first chapter introduces the research background, significance, research methods and contents. The second chapter introduces the basic Concepts of trust and literature review. The domestic and foreign research and the theoretical basis of trust supervision are summarized in the second chapter. The model of net capital-economic capital is established in the third chapter according synergetic. The implementation effect of net capital supervision is researched in the forth chapter. In this chapter the model is introduced and the variables are defined. The conclusions and proposals are offered of this study in the fifth chapter.The study finds that the model of net capital-economic capital can control the risks of trust company effectively. The implementation effect of 2012 years is better than that of 2013years in fact. The net capital/net asset index can guide capital and risk level. But the effect of the net capital/risk capital is not appeared. And Capital change dose not have a marked impact on risk change. Therefore the effect of net capital supervision can control the risk of trust company, but it does not support regulation fully, and it needs more time to be tested. In view of the existing problems, the author put forward some proposals on the trust companies and regulators.
Keywords/Search Tags:synergy theory, net capital, economic capital, monitoring effect
PDF Full Text Request
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