Research On The Operating Efficiency Of Trust Companies Under Classified Supervision

Under the atmosphere of stricter supervision in recent years,trust industry is gradually losing its institutional bonus,together with the extensive development at early stage not building a benign operating environment,violations frequently rises.Especially in 2015,the high leverage of umbrella trust drove the stock price rising sharply and causing a crash,and shadow banking’s risks gradually appear,this seriously affected the stability of Chinese economy and also has caused the great attention of the trust business supervision,corresponding policy documents continuously came out.Under the background of a complex economic situation and strict regulation,at the end of 2016,the formal regulatory eventually introduced the rating system,which drive our trust company into a classified regulatory period.In the short term,due to the restriction of the allocation of resources and the business areas developing,profit ability of the trust company got weakened,but in the long term,regulatory trends based on risk prevention may improve companies’ risk-control ability and speed up the reshuffle of the industry,leading to a high-quality industrial development.According to the supervisory-rating results of the nearly three years,companiesgained A+ rating keep vacancy and the number of A-ratings consecutively decrease from 15 in 2016 to 6 in 2018,which can reflect the regulation keep strengthening up year by year.This paper further study the efficiency of the trust company under this context,based on the overall analysis of the industry.In this paper,DEA method is used to calculate the operating efficiency,which can comprehensively reflect its resource allocation level,development potential and input-output level.The result shows that the operating efficiency value of trust companies increased by 10.4% from2016 to 2017,while the operating efficiency value of trust companies decreased slightly from 2017 to 2018,with a range of 1.4%.The development levels among the trust industry are not balanced.The higher operation level of innovative trust companies can promote the further improvement of the industry as a whole,while the average operating efficiency of non-innovative companies is lower than the average of the industry and there is a large gap between them and innovative companies.According to the results of malmquist index decomposition,the change during the study period present stabilization in the fall because of the influence of the supervision.But the progress of the technical efficiency index can reflect the overall structure of the trust industry optimize,under the background of classified supervision.That is to say,trust company is developing from the edging stage towards a high-quality industrial development stage.Further,through the Tobit regression model,choosing influencing factors respectively from the macro level and enterprise level,such as local economic level,the company’s business scale,the quality of talent and the cost-control ability to analysis.Talent quality have a significant positive effect on the operational efficiency of companies during study period,the business scale and cost-control level show a significant negative correlation,but p-coefficient of economic level isn’t significant.At present,the trust company should make efforts to avoid the adverse effects caused by its excessive scale due to its extensive operation in the early stage.Meanwhile,it should improve the quality of talents,strengthen cost-control and save expenses,which is conducive to the improvement of the company’s operation level.Finally,in order to improve the operating efficiency of trust companies in China,the following suggestions are put forward: improve thesupervision system and strengthen the supervision of the industry;return to the source business,improve the efficiency of resource allocation,optimize the business model;Develop business areas and improve the quality of talents.