| The P2P online lending, also known as "pear-to-pear lending" or "person to person lending" is a method of debt financing which enables individuals to directly borrow and lend money via a third-party online pear-to-pear platform-without using an official financial institution as intermediary. The lender is usually natural person and the borrower could be natural person or legal person (e.g. companies). The first P2P online lending was offered by an UK company named "Zopa". The size of P2P online lending also grows rapidly in China. The first Chinese P2P lending platform named "YiXin" has been launched in2006, and "PaiPai Lending" established in2007in Shanghai was the first pure online unsecured P2P lending platform in China. Several years later, hundreds of P2P platforms such as "HongLing ChuangTou","RenRen Dai" appeared in China. Up to the end of2013, there are more than2000P2P lending platforms totally. The size of P2P loan was over100billion RMB, which increased by five times than2012and more than twenty times by2011. The rapid growth of P2P lending could bring more risks to the financial system, which requires much more guidance and regulations from government.This paper will firstly illustrate theories on loan, microcredit, the online P2P loan and current regulations on the P2P lending. This paper not only uses the media industry information publicly released, also conducted some of the research and interviews. In the creative process, this paper uses the method of literature study, network site data collection, data processing. Then, this paper will review the development history and current situations of the P2P lending worldwide. After that, the relevant problems faced by Chinese P2P lending companies including the law risk, regulatory risk, and operational risk will be analyzed. Finally, this paper will discuss the methods and experience of foreign governments in guiding and regulating the P2P lending and propose possible regulatory methods for Chinese government. |
PDF Full Text Request