Research On The Development Risks And Counter Measures Of P2P Network Lending Industry

With the advent of the Internet era of finance, P2 P network lending platform become to be known as an important supplement to force financial institutions. In 2007, the P2 P network lending model appeared in China, which based on unsecured mode P2 P industry, provide a new channel and ideas in addressing the issue of financing for the majority of borrowers and financiers. Despite this emerging industry has been get government’s strong support, but due to lack of supervision and low barriers to entry, a large number of issues platforms full the market. Underthe rapid development of the industry hide a large number of potential risks.Firstly, this paper take an introduction about theoretical basis of P2 P network lending, the asymmetric information theory 、the financial risk theory and the inclusive finance theory. Then,provides an overview of domestic and international study about P2 P network lending. Then, this paper combed the history and status of development of P2 P network lending.Secondly, this paper study the development risks of P2 P network lending industry the using qualitative and quantitative research method. The results showed that the development risks of P2 P network lending industry can be summarized in three areas, namely macro-environment risk, specific risk and common risk under different models and credit risk by financier. Specifically,(1) macro-environmental risk comes mainly from the imperfect credit system, the lack of regulatory body and relevant laws. The current overall macroeconomic downside could trigger a new round of unemployment, the platform will face the risk of overdue customers because their sources of income caused. While under the conditions of imperfect credit system, P2 P network lending platform is very difficult to audit clients.(2) In different operation modes, P2 P network lending platform faces its own specific risks, but also face some common risks. The specific risks of pure mediation mode mainly from data processing, risk customers identify and platform operations; The specific risks of complex mediation mode mainly from the self-built pool of funds and liquidity risk; The specific risks of online and offline co-operation mode comes mainly from risk management and employees. The common risk of the three modes is usury risk and asymmetric information risk.(3) Borrower as an important participant in the P2 P networklending,its own credit risk issues will affect the platform in a timely manner to recover the loan.The empirical results show, social security, work experience, monthly income, loan term and loan amount have a significant impact on the breach of contract, P2 P network lending platform should pay more attention to these factors in the re-examination of qualified borrowers.Finally, based on the various risks of P2 P network lending industry and China’s actual situation, this paper proposed some policy recommendations from three levels of the government, industry and the platform itself, to resolve and control the risks of P2 P network lending industry. The research results provide a theoretical support for our country to strengthen the P2 P network lending industry risk management.