Study On The Availability Of The P2P Network Lending Financing

P2P lending network refers to the combination of financial and computer industry; it isthe innovation of microfinance. With the rapid development of network technique, coverageand speed, efficient network technique makes the costs of information reduced, which hascaused formal finance to lose its dominant position. Therefore, network loaning will be thedirection of further development of micro-finance. The introduction of informationcommunication technology makes the scale of both sides in transactions wider and thematching probability higher. Even through both sides of the deal have never met each other,with the method of professional information exchange platform, creditors can easily obtainborrowers’ personal information. Then through distinction and selection according to theinformation, the creditors would have the rights of loaning money to the borrowers or not.Therefore, in the process of transaction, the efficiency of reception platform will have a directinfluence on the probability of borrowing money and the further development of networkreception market.Although P2P started late, it has universally developed and got high reputation in British,America, Canada and Japan with its advantages, such as its procedure is easy and doesn’tneed mortgage, and its threshold is relatively low. Compared with these formal financialinstitutions which have the relative heavily regulated system, the lending network has highadventure. Therefore, these formal institutions are reluctant to set foot in such market.Fortunately, the appearance of P2P lending network fills the vacancy of these formalinstitutions. It not only provides the medium and low-income earners with loan, but also helpsthem get ride of poverty.The development of P2P network is opposite to the whole economic tendency. In theboom period, people hold the positive attitude. These loan applications for borrowers who haslow ability to return will be approved, so these people need not any methods to borrow money.During the recession, banking system tighten the money supply, these people who couldborrow money from the banks are forbidden by banks. Unfortunately, these people who withlow quality have to convert their attention to other directions. P2P network loan business meet the needs of these people who were refused by the formal financial institution. The financialcrisis of2008caused a huge shock to the world economy, but it promoted the radicaldevelopment of the P2P network loan business.Numerous P2P lending network platforms began to come into at home after learningsuccessful experiences from abroad(Prosper in America, Zopa in British), such as PaiPaiLoan, YiXin and Hong LingChuangtou so on and so forth. It develops rapidly, but itinevitably turns out some problems. The first and foremost problem is the rate of successfullending. The trading two parts only communicate by the net and can not see each other whenthey make deal, which easily leads asymmetric problems. In order to get the loan, creditorsmay under-report or wrongly declare their financial ability or income, which made theloaners’ capital face the risk. However, to some extent, the appearance of P2P lendingnetwork relieves the asymmetric problems existing between the loaners and creditors. Thisthesis analyzed the loaning market at home and aboard and chose the representative P2Plending network platform. The purpose of this thesis tries to solve mysteries that why the P2Plending network has low successful lending rate by analyzing its real trading data.According to the analysis on the P2P lending network market at home, it is not hard tofind that there are many network host platforms at home, but there are few well-developednetwork host platforms, not mention these platforms which can collect the all round tradingrecord. By aids of comprehensive analysis, the author chose the best-developed and thebiggest lending network platform as the studying subject. This thesis accounted More thanthirty thousand real trading records of PaiPai Loan (from2011.05.01to2012.04.30).According to the statistic description and Eviews’ mpirical study, it can be drawn theindications for trading platforms, such as the amount of loan, length of maturity, the rate ofloan, and the relation between the times of previous trading successful and the rate ofsuccessful loaning. In order to efficiently improve the P2P lending network platform, thisthesis specifically pointed out how to establish and improve the domestic personal creditsystem and put forward the measurements for fixing position of the loan network platform.