Creation of the first insurance fund for trust industry

The Chinese Ministry of Finances and the banking regulatory commission (CBRC) have published the rules governing the first insurance fund created for the trust industry (2.1 trillion USD of assets under management at the 30th September 2014).

Aimed at reducing the financial risks linked to shadow banking, the fund shall be financed by all trust firms operating on the Chinese territory, as well as by the China Trustee Association. According to CBRC's officials, the fund should be, initially, endowed with 6.47 billion USD.

"The trust insurance fund will only be the last resort to help rescue trust companies", but will not be used at all to compensate investors in case of bankruptcy, has said a CBRC spokeman.
The companies' contribution, currently set at 1% of the net value of their assets, will later be dependent on the risk-profile of each company.

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