Profitability Analysis Of G Trust Company Based On DEA Model

Now the economic development in China is in the stage of bottleneck,and the basic features of new normal of economy are slower growth,structure adjustment and motivity conversion.Therefore,reforms need to be used to solve this fundamental long-term problem.Under the new normal,the Chinese government will not rely on fully stimulation policies to push the economic development,but one hand is to adjust the market liquidity by means of orientation reduction,PSL and MLF,and the other hand is to release the potential and vitality of economic growth.Financial reforms,like capital liberalization,interest rate liberalization and marketization of capital market operation,continue to push ahead.With the development of Chinese economy turning to medium-high speed,the exposure of three risks –property-value bubble,shadow banking and debt of local government– is increasing.The long-term stable development of economy requires stimulating economic endogenous growth momentum.As a result,the increasing exposure of credit risks and market risks will be inevitable with the absence of large-scale economic stimulation policies.In the new normal economy,the coming of generic asset management eraprovides other financial institutions and property management organizations with more opportunities of conducting homogeneous asset management business with Trust Company.So the system bonus,development and market dividend in Trust Company will be weakened gradually,which challenges and stresses on the original operation development model of the Trust industry leading to the increasing of Trust risk events and the grim situation of traditional business.Thus the Trust industry is on the way of transformation.Meanwhile,reforms of the Chinese government are continuously promoting and standardizing business and bringing new chances for Trust Companies.This paper is based on the above background,setting the individual case of running situation and data of Trust Company as the research object,making use of DEA model to analyze its profit efficiency,so as to give suggestions of business development by analyzing the results.At the same time,the paper makes a brief analysis of future business development direction for the Trust industry,and hopes to provide a common reference for industry development by the individual development study.