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What's the difference between trust and bank credit?
What's the difference between trust and bank credit? Trust and bank credit are the same economic behavior based on credit, but since they are two products, they are bound to be different. What's the difference between trust and bank credit?

Different economic relations

Trust is to finance and manage property according to the business purpose of asset management of trustees and agents, which is related to trustees, trustees and beneficiaries, and its trust behavior reflects various credit relationships.

As a credit intermediary, bank credit is a bilateral credit relationship among banks, depositors and lenders.

Different actors

The principal is the main body of trust business.

The main body of bank credit is the bank.

Take different risks

Trust generally operates and manages the trust property according to the intention of the trustor, and the operational risk of the trust is generally borne by the trustor or beneficiary. Trust and investment companies only charge fees and commissions, and do not guarantee that the trust principal will not be lost or the minimum income will be obtained.

Bank credit absorbs deposits, issues loans and operates independently according to the deposit interest rate stipulated by the state. Banks bear the overall operational risk of credit funds. If they are not bankrupt, the deposit must be paid on time.

Different reimbursement methods

When a bank goes bankrupt, deposits and loans participate in the liquidation as bankruptcy liquidation property.

When the trust and investment company terminates, the trust property does not belong to liquidation property, and the new trustee will continue to manage it to protect the trust property from losses.