Zhang Zhenyu: Trust is handled by trust companies. Entrusted loans are handled by banks. Trust loans refer to loans granted by trust institutions to self-approved units and projects with their own funds such as trust deposits within the scope prescribed by the state. Entrusted loans refer to loans provided by government departments, enterprises, institutions, individuals and other clients, which are issued, supervised and recovered by commercial banks (i.e. trustees) according to the loan object, purpose, amount, term and interest rate determined by the clients. The objects and uses of entrusted loans are designated by the clients, and the objects and uses of trust loans are selected by the trust institutions themselves; The management of entrusted loans is relatively loose, while the management of trust loans is as strict as that of bank loans. Compared with bank loans, the interest rate of trust loans has a certain floating range. Therefore, trust institutions can support the special and reasonable capital needs of some enterprises under the conditions permitted by national policies.

2. What's the difference between a loan trust and a bank loan?

1. Bank loans are relatively standardized products, and the price of products, that is, the elasticity of interest rates, is relatively small. Trust loans are personalized and treated differently. The flexibility of trust loans is characterized by flexible pricing, flexible matching of risk and income, and flexible lending to meet the individual needs of customers. 2. Trust loans and trust investments are combined and transformed with each other, so as to maximize the use of trust funds and strive for the greatest balance in the combination of risks and benefits. 3. Trust companies have the function of direct investment, which can not only make direct equity investment while issuing loans, but also enhance the control over investment projects. At the same time, if the return on net assets of the project is high. Banks often evaluate the solvency and risk degree of enterprises from the aspects of enterprise financial indicators, management indicators and industry indicators, but they do not have a positive impact on enterprise management, and their punishment measures are more deterrent, less influential and often have poor results.

3. What's the difference between trust financing and bank financing?

The first is different economic relations. Trust is a kind of variable credit, and its participants include trustee, principal and financier. However, bank financing is mostly a bilateral credit relationship with depositors or lenders. Secondly, the business scope is different.

Trust is the only financial institution in China that can span industrial investment, money market and capital market. Besides trust deposits and loans, there are many other businesses. The banking business is mainly to absorb deposits and issue loans, and mainly to finance funds, with a small scope. Their financing methods are also different.

As the trustee, trust institutions play a direct financial role instead of the principal as the main body of direct financing and financing. The role of the bank is an intermediary, which collects idle funds or temporarily unused funds and gives them to the lender, thus playing the role of indirect financing. Finally, there are different ways to get benefits. The floating trust income is calculated according to the actual results of the trustee's operation. The income of the bank is calculated according to the interest rate stipulated by the bank and determined according to the service fee provided.

4. 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.