Study On Chinese Trust Company’s Financial Efficiency On SFA Method

With the rapid economic development of our country, the rapid growth of the size of national wealth is accompanied and expanding financial needs of investors.Our country develops policies to promote the development of the trust industry, so the community also increasingly recognize trust companies are specialized financial institutions. Trust industry rely on its unique institutional advantages of rapid development, while in the trust after the implementation of the New Deal regulatory tend to fair, just and open, more and more scientific and standardized, the combined effect of various conditions, such trust industry over the financial insurance industry’s first sit tight II to the throne. But on the other hand, a lower level of understanding of the community trust, social recognition is not enough liquidity led to lower overall trust, poor risk management capabilities. Meanwhile, with the country entered the era of big data, the traditional financial sector financial impact of Internet and other emerging body must trust in the development of scale, which also requires the Trust to improve its efficiency in order to effectively cope with the financial challenges brought by new body. Although the trust industry is still good momentum of development, but it faces a series of potential risks have to pay attention to. First, the 2012 implementation of "Asset Management Deal", in 2013 commercial banks and insurance asset management companies and information management program launch, fully open the "pan asset management era", further exacerbating competition in the financial sector; secondly, China’s macro economy as a whole is not optimistic, the environment has seriously hampered the trust of the operating conditions, and in 2014 two "money panic" caused a greater liquidity risk,while the risk of frequent incidents of cases caused by the systemic risk is also greatly enhanced. Therefore, in this market environment, the development of the trust industry in order to truly give full play to its market value, must take advantage of the trust, effective use of its role in the allocation of resources, and fully secure its position in the financial industry, a reasonable deal with other financial sectors It challenges. In all indicators to measure competitiveness, efficiency is the most intuitive, so, in order to further the development of the trust industry must pay more attention to efficiency. Efficiency issues, financial efficiency is also essential, it epitomizes the overall operating level of trust. Therefore, this study will focus on financial efficiency under the new situation of China’s trust companies, trust companies on the basis of the analysis of financial efficiency levels further explore the influencing factors of financial efficiency.This paper is divided into six parts: The first chapter is the introduction, mainly introduces the research background, significance of the topic, literature review at home and abroad, finally points out the innovation of this paper; the second chapter describes the basic concepts of trust and efficiency and theoretical foundation, laying the groundwork for the later chapters; the third chapter reviews the history and development of China’s Trust industry 2012-2014 Situation and trends Trust costs and profits and its deep-seated reasons; the fourth chapter analyzes the qualitativefactors Affecting Trust financial efficiency; chapters V and VI are empirical study,compared with SFA model Portrait of Trust industry 2012-2014 financial efficiency and the size of the in-depth theoretical and empirical factors Affecting analysis;Chapter VI came to the conclusion of this article, put forward suggestions on this basis, aimed at improving the efficiency of financial trust industry.This article seeks to develop can be combined with the status quo of China trust industry the actual situation on the basis of previous studies made some innovations.In the study, the domestic scholars study the efficiency of most commercial banks,insurance, trust and paper studied the efficiency; in the definition of the concept, this paper proposes a new concept, namely financial efficiency, including cost efficiency and profit efficiency; research status section of this article is different from the overall development process and the status of domestic research of other scholars general trust industry, but targeted research costs and profit status quo situation,analyze the trends and factors affecting the financial efficiency It is described; the research methodology, this article is different from the previous method of parameters they use stochastic frontier Act(SFA) measure the efficiency of financial trusts using non-parametric methods research.