Study On The Risk Prevention Of P2P Lending Platform

As a new kind of private lending, the existence and development of P2P lending made private lending more bright and diversified. Meanwhile, it made allocation of idle funds from society more reasonable. It also increased the investment channels of our country residents and promoted the development of China’s finance system while made up traditional financial problems. But we also have to know that the P2P lending in our country still belongs to emerging things. It has the property of financial institutions, but has no financial license and is completely free out of the supervision. Too much demand of market and the lack of entry barriers made P2P lending platform grow uncontrolled. As the lack of credit system in China, the borrower’s moral risk is inevitable. The fund chain of P2P lending platform is too weak to afford the economic downturn. Now P2P lending platforms are facing more and more risk. Since the second half of2013, many P2P lending platforms had closed down. There were more than70P2P lending platforms which went of business and involved fund of1.2billion Yuan during several months.40P2P lending platforms announced the rupture of capital chain or bankruptcy in October. According to incomplete statistics, the overdue rate of P2P lending industry in China is more than5%in whole2013. The risk is in a trend of deterioration.At present, the most urgent problem of whole P2P lending industry need to solve is how to prevent the risk that may break out anytime. Many P2P lending platforms which seem to run in good condition may bankrupt or escape with money abruptly. Therefore, it becomes more and more important of measuring the risk of P2P lending platform efficiently in order to prevent the risk better. Compared with the mature risk-measuring system of traditional financial institution like bank, as an emerging thing, there is a lack of methods in measuring the risk of P2P lending platform in China. Now, most of studies on P2P lending platform are qualitative analysis. Only a little quantitative Analysis focuses on the overdue rate of borrowers. The comprehensive risk measurement and rating of P2P lending platform is still scarce. Therefore, this article tries to measure the risk of P2P lending platform in order to prevent the risk of P2P lending platform effectively.In chapterl, this article introduces the study background and then expounds the study purpose and significance. The second chapter introduces and discusses the primary platforms and operation mode in domestic and overseas. The third chapter analyses the primary risk of domestic P2P lending platform. The fourth chapter firstly makes a preliminary investigation on domestic P2P lending platform then analyses the statistics of20domestic P2P lending platforms. This chapter focuses on quantifying comprehensive risk through analysis by synthesis and AHP, analyses the empirical result. The fifth chapter puts forward points and suggestions about how to prevent the risk of domestic P2P lending platform effectively.