Risk Analysis And Prevention Of P2P Network Loan Borrower In China

P2P (peer to peer) network lending originated from P2P microfinance. Thedevelopment and popularization of the Internet makes the P2P microfinance from"below the line" pattern to both “on the line" and "below the line" pattern, the patternof "on the line" give the birth to P2P network lending platform.P2P network lendingbreaks the scope of microfinance, and its ability of diversification of risk is stronger.At the same time, it can solve the shortage of funds of the traditional microfinance,now it has become the new financial management of small investors. However,currently, P2P network lending faces a lot of risks: the credit risk of the borrower,the security risk of registered information, operation risk of the platform and so on.Now China has not yet established a perfect individual credit system, so the credit riskof the borrower has become the biggest risk of the P2P network lending platform.Identify and control the credit risk of the borrower effectively or not, which willdirectly affect the future development of P2P network lending.Based on this, this paper first describes the meaning of P2P network lending,then discusses a series of problems of P2P network lending platform. This paperfocuses on the research of trying to reduce the credit risk of the borrower andproposes a model for evaluating the credit risk of the borrower on P2P networklending platform before the loan. The model is based on the AHP (analytic hierarchyprocess), expert evaluation method and the principle of subordinates’ function offuzzy mathematics. The point is to reduce the credit risk of investigating before theloan and to provide help for the healthy and efficient operation of P2P networklending platform.Specifically, this paper consists of six chapters. The first chapter: introduction.It mainly elaborates the topic significance of the paper, relevant literature review, theresearching method, innovation points and limitations etc...The second chapter: theoverview of P2P network lending. It firstly summarizes the origin and the meaning ofthe P2P network lending, then discusses the development situation and problems ofChina P2P network lending. The third chapter: the prevention of the credit risk of theborrower on P2P network lending platform abroad. Briefly narrates some researchresults of the credit risk of the borrower on P2P network lending platform in theforeign theoretical circles and the actual operation of the prevention of the credit riskof the borrower on P2P network lending platform in Europe and the United States Thefourth chapter: analysis of risks existing on P2P network lending borrowers in China. This chapter is a focus of the full paper. Some risk examples of P2P network lendingplatform in China is introduced firstly, and then summarizes the main features of theprevention of the credit risk of the borrower on several major domestic platforms,finally presents the basic ideas of the prevention of credit risk. The fifth chapter: themodel can be applied to a P2P network lending platform before the loan. The fifthchapter is the key of the whole thesis. A model for evaluating the risk of the borrowerson the P2P network lending platform before the loan is proposed. Next is theevaluation of model validity and limitation.The model aims to reduce the credit risks,to provide help for the operation of the P2P network lending platform. The sixthchapter: Conclusion. It concludes the whole article, and proposes the expectations ofthe future development of P2P network lending platform.