Research On The Evaluation Of The Operating Efficiency Of Trust Companies Under The Background Of "new Asset Management Regulations"

In April 2018,the “Guiding Opinions on Regulating the Asset Management Business of Financial Institutions” was promulgated,opening a new era for the development of China’s asset management industry.Based on the principle of "Reducing stock risks and strictly preventing incremental risks",the new regulations put forward the core objectives of breaking rigid redemption,prohibiting fund pool business,removing multiple nesting and inhibiting channel business,which demonstrates the determination of the regulatory level to reshape the capital management business and optimize the financial system structure.Affected by the new regulations,by the end of the third quarter of 2019,the balance of entrusted assets of 68 trust companies across the country was 22 trillion yuan,down 16.19% from the end of the fourth quarter of 2017,with a large decrease.The introduction of the new regulations have caused a great shock to the trust industry and brought greater challenges to the transformation and upgrading of the business structure of trust companies.Under the background of strong supervision,we need to analyze the operation efficiency and development status of the trust industry from a new perspective.This paper sorts out the domestic and foreign literatures on the study of operating efficiency of financial institutions and trust companies,and introduces the theoretical basis of operating efficiency connotation,technical efficiency theory and efficiency evaluation method of trust companies.Then,the development status of trust industry is analyzed from three aspects: scale of trust assets,investment of trust assets and operating performance.This paper uses the data enveloping method(DEA),and takes actively managed trust assets to total assets ratio,number of employees,business and management fees spending as input index,takes trust return rate,fees and commissions by net income,trust net profit as output indicators,to calculate and analyze the efficiency of 51 trust companies in China from 2014 to 2018.Based on the empirical results,this paper puts forward suggestions to improve the operating efficiency of trust companies from the perspectives of macro-regulation,industry and company.Studies have found that the overall technical efficiency of China’s trust companies did not achieve effective state,and the industry is polarized.From the background of controlling shareholders,the technical efficiency of trust companies in financial institutions holding shows a positive trend,the average efficiency value of trust company in corporation holding is volatile,while the industrial ranking of the average technical efficiency of trust companies in government holding declines gradually.In addition,trust companies in China are in the stage of increasing returns to scale in most years,and the scale efficiency of trust companies controlled by state-owned enterprises is usually higher than that of companies with other types of shareholder background.Therefore,this paper believes that the regulatory level should adjust the regulatory objectives appropriately for the trust companies with different sizes and backgrounds of controlling shareholders,and encourage the trust companies controlled by state-owned enterprises and central enterprises to adopt the market-oriented mode of operation.At the industry level,it is necessary to define the industrial orientation of its own asset management and accelerate the return to the business source.In addition,we should enhance the initiative of local supervision so as to perfect the multi-level supervision system and strengthen the self-construction of trust industry associations.At the company level,both scale and efficiency should be taken into account to promote the transformation and upgrading of business structure.Secondly,take advantage of the advantages of controlling shareholders to enhance the business synergies.Then,improve the ability of active management and risk control to adapt to market changes.Finally,strengthen and standardize the cooperation with other financial institutions.