Research On The P2P Network Lending Legal Supervision

In2005there appears an efficient and shortcut mode of network lendings whichrelies on the Internet in emerging business model in the UK, namely P2P (person toperson) network lending. Since a few years from the advent of it, all the world arebeginning to pop from this new lending model. In this context, China is alsoappearing the birth of their first P2P network lending platform-Paipaidai, and in July2007it began to have a trial operation in Shanghai. Thereafter, our country emerged alarge scale ventures such as Hongling, Renren and a number of other network lendingplatforms, P2P network lendings is showing an explosive growth in China. Thisnew thing has brought vitality to our loan market, but at the same time has left a hugepotential risks, such as blurred identity, the lack of laws and regulations, regulatory,not standardized internal management, and so on.And we think the main bodies thatinvolved in the network lendings,and discusses the risks that may arise in each subjectone by one, including the borrower, the lender, intermediary service side, insurerand guarantor, etc., as well as analysis the regulatory status of the main parties.As a financial innovation, regulatory and timely follow-up of the law is verymuch needed. Through a comprehensive analysis of P2P networks lending,this articleanalyzes their business models and the main legal relationships combined with anadditional oversight of management experience,and the purpose is to give our lendingP2P network lendings some reasonable and effective recommendations to make ithealthy and orderly develop.