Research On Risk Management Of Real Estate Trust Business Of XA Trust Company

In recent three years,the financing channels of real estate enterprises have been fully tightened up due to the strong regulation of financial industry and deleveraging ofreal estate industry.Trust financing of real estate enterprises is in great demand against the background of limited banks’ on-the-books lending,strict debt issuance review of real estate enterprises and shrinking in private investment fund nonstandard bond financing.In the trust industry,real estate trust business has become the main business and profit opportunity for trust companies,because of the growing risks of default in brick-and-mortar enterprises,the decreasing government credit in government financing vehicles and depressed capital market.The real estate industry is characterized with prolonged project developing,huge demand for capital and a large number of uncertainties.All of these make real estate trust business having significantly higher risk than other investment trust business.As the scale of real estate trust business is increasing dramatically,redemption risk has also increased significantly.How to accurately identify,effectively control and dispose risks in real estate trust business have turned into top priority for trust companies.This paper analyzes the research background and significance,and summarizes the research content and methods in the first place.Then I review the theories of risk management and real estate trust business,and analyzes the current situation of real estate trust business at home and abroad,the real estate trust business model,existing problems and risks in China.After that,taking real estate trust business of XA trust company as research object,I analyze its existing risk management problems and causes.Finally,the following solutions are proposed according to relevant theories:(1)risk management consultant design,(2)risk management system design,(3)risk management methodologies and processes design,(4)risk management information system architecture design,and summarize safeguards for the implementation of the solutions.