The Measurement Of The Operating Efficiency Of Trust Companies In China And The Analysis Of Its Influencing Factors

Since the establishment of the one-law and two-regulation system in 2007,the business scale of trust companies has expanded rapidly.By the end of 2018,its total assets had reached 23 trillion yuan,second only to the banking industry,which played an increasingly important role in the economic system.But at the same time,with the advent of the "epoch of asset management" and the impact of economic downturns and tightening regulations,the boundaries between traditional trust businesses and products such as securities asset management and bank wealth management have become increasingly blurred.Trust companies facing increasingly fierce competition in the financial market.In 2018,the total asset size and total profit of the trust industry both experienced negative growth and poor operating conditions.In this context,how trust companies can leverage their business advantages,build operating brands,and achieve sustainable development is a question worth pondering.Taking this as the starting point,this paper studies the operating efficiency of trust companies and puts forward some suggestions to improve the operating efficiency of trust companies based on theoretical research and empirical analysis.Firstly,this paper theoretically defined the operating efficiency of trust companies and analyzed the measurement method of efficiency by combining the connotation of financial institutions’ efficiency and the operating characteristics of trust companies.Secondly,the paper analyzed the influencing factors and empirical methods of operating efficiency and selected relevant indicators for empirical research.In the efficiency measurement,this article selected the operating data of 64 trust companies in China from 2013 to 2018 for specific analysis.The principal component analysis method was used to construct the input-output index system,and the DEA method was used to measure the technical efficiency,pure technology efficiency,scale efficiency.And trust companies were fully ranked by the super-efficiency DEA model.Combined with the operating characteristics of trust companies,this paper focused on the internal factors of the company,selected quantifiable macro factors and industry factors,and used the Tobit model for regression analysis.The research results show that the operating efficiency of trust companies in China is obviously polarized,the pure technical efficiency value reflecting the resource allocation ability is low,and the efficiency of trust companies fluctuates frequently in each year,so they can not keep the leading position for a long time.Besides,the results find that the concentration of the trust industry,the size of the active trust assets managed on an average annual basis,and the proportion of fee income are significantly negatively related to the operating efficiency of the trust company;the growth rate of high net worth individuals,asset-liability ratios,financial institution holdings,and the financing proportion of trust income are significantly positively related to the operating efficiency of trust companies.Based on this,this article puts forward suggestions for improving operating efficiency from three levels: macro,industry and trust company.The macro level calls for improving the regional business environment,the legal system of the trust industry,and the social credit system;the industry level emphasizes on reducing the degree of monopoly and strengthening financial industry cooperation;the company level proposes to serve high net worth customers,conduct business innovation and diversify equity,etc.