Research On Risk Control Of P2P Network Borrowing Platform In China

P2P lendingnetworkis a financial innovation, combining Internet finance andprivate lending.By making private lending transparent, P2P lending networks canmeet both the investment demand of private capital and the financing needs of SMEsand individual.Thus they are useful supplement to the existing financial system.However, with the rapid development of P2P lending industry, more and moreproblematicP2P network lending platforms has been revealed, and the publicstarted topay attention to the risk control of P2P platforms.Since risk control is the key to anyfinancial activities, how to control risk is one of the core issues that all P2P lendingplatforms have to face. Risk management is a basic prerequisitefor investors at aplatform. This thesis explores the risks that P2P network lending platforms are facing,and gives somemethod suggestions for Chinese P2P network lending platforms tocontrol risks from the experience of major P2P platforms both at home and abroad.Finally, this thesis concluded that P2P network lending platforms should strengthentheir risk control on the following aspects: construction of credit investigationsystem,setting-up of risk reserve fund and escrow funds ofthird-party, selecting of guaranteecompany and strengthening of technical security of the system, etc.