In trust business, the person who owns the trust property is usually called the principal. They entrust their property to others for management and disposal in order to achieve a certain purpose. The trustee is the person who accepts the trustee's request and manages and disposes of the trust property according to the contract. When the client entrusts the property to the trustee for management and disposal, both parties need to sign a contract or agreement, which is called trust behavior. Income will be generated through trust activities, and the person who enjoys the trust income is the beneficiary, which can be the principal himself or a third person. The economic relationship between the trustor, the trustee and the beneficiary around the trust property is called trust relationship.
According to the different objects, purposes and business contents of trust, the types of trust can be divided in many ways. According to the object, it can be divided into personal trust and legal person trust; According to the purpose, it is divided into for-profit trust and non-profit trust; According to the beneficiaries, it is divided into self-interest entrustment and other-interest entrustment; According to the benefit scope of trust, it can be divided into public letter and private letter; According to the content of trust business, it can be divided into fund trust and non-fund trust; According to the basis of trust behavior, it can be divided into free trust and legal trust; According to the field and scope of trust business, it can be divided into domestic trust and international trust; According to the nature of trust affairs, it can be divided into civil trust and commercial trust.
As an intermediary business of banks, trust has three functions:
Financial function. Because trust focuses on raising funds and financing, financing through trust is also an important financing method.
Financial management function. Because the generation of trust begins with financial management. The so-called financial management means that the trust institution accepts the entrustment of the property owner to manage and handle the property for it. As far as the businesses handled by domestic bank trust departments are concerned, they all have financial management functions.
Credit service function. As an intermediary business of banks, trust can provide rich credit services to legal persons and organizations according to actual needs.
At present, banks in China provide the following trust services:
Trust deposit. Refers to the funds that enterprises, units or individuals can use independently, which are deposited in trust institutions and entrusted to use on their behalf, but the objects and purposes are not specified.
Trust loan. It is a kind of trust business in which trust institutions provide funds to enterprises in the form of loans with general trust deposits and part of their own funds absorbed, and charge interest.
Trust investment. Trust institutions directly invest in enterprises as investors. The sources of trust investment are the trust institution's own funds and long-term stable trust deposits.
Property trust. Trust institutions accept the entrustment of entrusting units to sell or lease property to designated or unspecified units.
Entrusted loan. According to the requirements of the entrusting unit, the trust institution uses the loan funds pre-deposited by the entrusting unit to issue loans according to the objects and purposes specified by the entrusting unit.
Entrusted investment. The trustor deposits the funds to be invested in the trust institution and entrusts it to invest in the designated enterprise or project, and the trust institution will supervise the operation and management of the enterprise and the income distribution on its behalf.