Research On The Mode, Problems And Countermeasures Of P2P Loan Platform In China

With the development of Internet technology in recent years, P2P lendingplatform which combines microfinance with network technology begins to appear.Since2005, P2P lending services industry has been booming all over the world, P2Plending model also gradually get people’s attention. Domestic P2P lending platformemerged and developed rapidly since2006. The number of domestic P2P lendingplatform grows from5in2009to523in2013. Meanwhile, the volume of P2P lendingplatform is also growing rapidly. As of December31in2013, the turnover of P2Plending platform reached89.71billion Yuan with a growth rate of292.4%. Thegrowth rate is expected to remain around200%over the next two years.The CBRC has issued “Notice of Credit Risk in P2P” to alert attention to therisks of cross-border bank “contagion” in August2011. The People’s Bank of Chinadelimited the range between P2P lending platform and illegal fund-raising inNovember2013. While P2P lending platform gets attention of the relevant authorities,the P2P lending platform lending in China is still in the regulatory vacuum. As therelevant law is uncompleted, the PPC and the CBRC have no statutory duty to itssupervision. The established threshold of P2P lending platform is low.With no strongexternal supervision, the industry is faced a lot of risk. The incidents of P2P lendingplatform in2013happened frequently. There is75platforms which went bankrupt in2013.This paper analyses and studies two types of P2P lending platform developedpatterns, compares the similarities and differences of the five modes in domestic P2Plending platform, then makes specific analysis for the problems facing to P2P lendingplatform in three levels of operational level, industry level, regulatory level, andfinally gives specific recommendations for regulators, P2P industry and investors.Ihope this paper can provide a reference and guidance to P2P lending platform andhelp to grow P2P lending platform in the future development so that P2P lendingplatform can play more and more important role in poverty alleviation and financingfor SMEs and serve the real economy better.