What Is the Depository Trust Company?

Trust business is also called "trust trade". Business activities that buy and sell on behalf of customers and charge a certain fee. For example, consignment stores, trading warehouses, and trust service departments attached to commercial enterprises are entrusted with purchasing, consignment, consignment, or organizing transactions between buyers and sellers. The commission income from agency business is the basic income of trust business. The commission fee for agency business is determined based on the number of facilities provided, the number and amount of goods purchased through consignment, and a certain percentage of labor services. The accounting of fee income can be set up as a "charge income" account, or a detailed account of fee income can be set up under the "other income" account. At the same time, a record book can be established to record the situation of fee income of different businesses. For trust enterprises mainly engaged in "purchasing" and "consignment sales", the fee income shall be included in the "operating income" account. Trust companies, like other companies in the business services industry, also incur some business expenses in their business activities. The difference between business income and business expenses is the net income or expenses or profit (loss) of the trust business. ^[1]

Trust business

Designated trust funds refer to the scope of operation of trust funds when the trustees deliver the trust funds to the trustees. Business types include:

(1) Application scope of instruction: client and

Securities investment trust is based on

Leasing is renting someone else's property. Modern leasing is mainly equipment leasing. In order to make equipment investment, the company proposes to the leasing company the equipment needed for the lease. The leasing company finances it, and purchases suitable equipment from the supplier according to the requirements of the leased company. Companies need to pay rent on time. At the end of the lease period, the lessee can have

Corporate trusteeship refers to the partial or full transfer of the corporate legal person's property rights in the form of a contract, that is, the corporate entity of the corporate property right as the principal, through certain contract provisions, transfers part or all of the corporate legal person's property within a certain period and under certain conditions. To the trustee, so as to realize the conditional transfer of property management rights and disposal rights, and thereby achieve corporate assets

Because operating trust and executing trust services involve a series of social obligations, the public believes that such services should be managed very strictly. In the U.S., only a few states permit commercial banks to carry out trust business on the basis of the concession certificates they receive to engage in commercial banking activities; most states require banks to first obtain a special license from the relevant state branch office Operational; state banks that are members of the Federal Reserve need permission from the Federal Reserve Board to handle Escrow operations.

Trust business

In addition to these special permits, most states require state banks to deposit a pool of securities in state treasuries or certain designated state agencies to ensure that they properly perform their duties as principals. The trust of the National Bank is supervised by the currency supervision agency. Although currency regulators require securities or other assets to be deposited as guarantees, if national banks operate trust businesses in states that require specific asset guarantees, they still have a responsibility to follow the laws of that state.

In the United Kingdom, the trust business is mainly run by banks and insurance companies, and professional trust companies account for a small proportion. According to statistics, banks account for less than 20% of all trust businesses in the UK, and most of them are concentrated in the four major commercial banks established by Westminster, Mitterrand, Barclays, and Lloyds. Trust Department and Trust Company. Since most of the trust business is undertaken by individuals, trusts in the UK are mainly democratic camps. Existing trust business in the United Kingdom is mainly performed by individuals to execute wills and manage property, while legal entities are mainly responsible for securities agency services such as stocks and bonds, and annual trusts, investment consultants, and agency land transactions.

In Japan, there is a trust bank dedicated to trust business. There are many types of banks in Japan. According to the financial policy of the Tibetan province, the division of business between various banks is divided into two divisions:

The first is the separation of long and short, that is, the banks that operate short-term and long-term deposits should be separated. The second is the separation of banks and trusts. That is to say, long-term credit banks are separated from trusts. Except for banks approved by the Tibetan Province, which can conduct trust business, other banks do not have trust business. As of the end of 1988, there were seven trust banks, including Mitsui, Mitsubishi, Sumitomo, Yasuda, Toyo, Japan, and Chuo, as well as one ordinary bank, Yamato Bank, which also operates trust business.

In China's financial structure, the separate regulations on separate operations and separate management have clearly prohibited the concurrent operation of banking and trust industries.