Research On The Risk Supervision Of P2P Network In China

With the continuous development of Internet and Modern information technology, the Internet and Finance gradually merging and interacting, forms a new kind of financial format. That is Internet Finance. The typical Internet Finance based on technology of Cloud computing and Big data is a data-driven model of financial service on internet. It is in favor of solving dissymmetry between investor and borrower and increasing service efficiency. As a useful complement of traditional finance, Internet Finance meets the increasing heterogeneous financial needs.P2P network lending model is an important component of Internet Finance. After introduced, it develops rapidly with growing deal sizes and players, which reflects its exuberant vitality and continuing innovation ability. For years, the financial system is still dominated by banking and encapsulated monopolistic control, which lacking service consciousness and innovation spirit is unwilling to provide financing services to small micro enterprises and ordinary people. Appearance of P2P network lending model eventually fills this gap. From the aspect of investment channels, in case of rate regulation and singularity of investment varieties, investors are difficult to obtain a high yield. P2P network lending model revitalize the private capital and meets investors’ high yield needs.P2P network lending model effectively meet the investment and financing needs on the long tail. Relying on network platform, it successfully achieves cross-regional capital allocation and expands the width and depth of financial services, which shows the idea of Inclusive Finance. Despite the many advantages of P2P network lending, we shouldn’t ignored certain risks on it. In our country, credit-evaluation data is lacking and technology of Big data is immature, which weakens the function of Internet on loan review. Depending on offline loan review and certain credit promotion measures to gain trust from investors, which no matter increase the cost of human resources and time, also weakens P2P network lending’ function and alienates the essence of Internet Finance. What’s more, the intermediate accounts for fund settlement is in the control of P2P network lending companies, who can use the intermediate accounts’ capital without any supervision, which raises capital safety risk for investors. In addition to above, P2P network lending companies are of varying quality, certain companies involves in online lending transactions without an independent system of risk control. They carry out business such as maturity mismatching arrangement and borrowing mark break-up, which hidden great liquidity risk and leverage risk and have negative effect on the operation of net lending industry.Before the outbreak of P2P network lending risk, by studying the risk formation mechanism, we can classify and sort the net lending risks, which is beneficial to seize key risky points. And then, based on the differences on risky points, this paper would put forward suggestion and countermeasures on regulation.To deeply analyze the P2P network lending risk, this paper makes theoretical discussion and specialist research to classify and sort the net lending risks, then proposes improvement advice on risk control and supervision. This paper is mainly composed of six parts. Firstly, it introduced the research results on P2P network lending risk classification, risk control system and regulatory policy. Secondly, it analyzed P2P network lending risk formation mechanism in theory and built up a risk classification body. Following, this paper introduced the situation and development trends of P2P network lending risk in our country and compared the differences in P2P network lending companies’ operation. Based on the above analysis, this paper further improved the risk classification framework. Later, this paper used the fuzzy-AHP with the integrated evaluation method to classify and evaluate P2P network lending risk. Finally, it gives some suggestions for risk control and supervision on P2P network lending according to the theory and specialist research results.