What is a trust and what does a trust company do?

1. Trust companies are also financial institutions, but unlike banks, trust companies cannot absorb deposits. Trust companies can raise funds by setting up some trust plans, and then invest the raised funds in some industrial and agricultural construction projects (such as highway construction projects and real estate construction projects). Investors can sign a trust plan contract with the trust company, and give the funds to the trust company to invest in a trust plan project. How much interest the trust company promises to give and how long it will take to return the capital. At that time, the trust company will directly transfer the interest and the returned principal into the investor's bank account.

Two. Measures for the Administration of Trust and Investment Companies Article 8 To establish a trust company, the following conditions shall be met:

(1) Having articles of association that comply with the Company Law of People's Republic of China (PRC) and the provisions of the China Banking Regulatory Commission;

(2) Shareholders who meet the requirements of the China Banking Regulatory Commission;

(3) Having the minimum registered capital that meets the requirements of these Measures;

(4) Having directors, senior managers and trust practitioners who meet the requirements of the China Banking Regulatory Commission;

(5) Having a sound organizational structure, operating rules for trust business and risk control system.

(6) Having business premises, safety precautions and other business-related facilities that meet the requirements;

(7) Other conditions stipulated by China Banking Regulatory Commission.

Extended data

In China, a trust company refers to a financial institution mainly engaged in trust business established according to the Company Law of People's Republic of China (PRC) and the Measures for the Administration of Trust and Investment Companies. Trust company is a multilateral credit behavior based on trust entrustment, in the form of managing monetary funds and physical property, integrating financing and integration.

Trust business involves three parties: the principal, the trustee and the beneficiary. The person who transfers the property right, that is, the original owner of the property right is the principal; The person who accepts the entrustment to manage and operate the property on his behalf is the trustee; Those who enjoy property benefits are the beneficiaries. There are many kinds of trusts, including personal trust, legal person trust, arbitrary trust, special trust, public trust, private trust, self-interest trust, other benefit trust, capital trust, movable property trust, real estate trust, business trust, non-business trust, civil trust and commercial trust.

Refer to Baidu Encyclopedia Trust Company