Study On The Risk Control System Of China’s Network Lending Platform

Network lending platform is a recently emerged non-governmentalfinancial organization and its appearance presents the vigor and creativity ofChina’s non-governmental finance. Defined as a small financial sector, thenetwork lending platform takes promoting inclusive finance as its concept andit is established to provide one-stop service like "finance supermarket" fornon-governmental investment. It plays the role of commercial bank in the fieldof non-governmental investment and financing. Due to its rapid developmentand large scale, the network lending platform has been quickly regarded as onepart of "shadow banks", which draws the attention of professionals in financialand legal field.On the basis of existing research findings and taking financial deepeningtheory and bounded rationality hypothesis as the basis of the argument, thisthesis probes into the prevention and control of the operation risks of networklending platform in China from the perspectives of guiding, regulating andpromoting the sound development of China’s non-governmental financialmarket as well as pushing forward China’s financial institutional reform. Thewhole thesis is divided into three parts: introduction, body and conclusion.In the introduction part, the thesis introduces the issue of the risk controlof China’s network lending platform based on the case of the bankruptcy of"Hahadai"and the case of the founders of"Youyidai"ran away with the cash.Then the thesis introduces relevant research findings at home and abroad, themajor research method adopted in this thesis and the value and significance ofthis subject.The body part consists of four chapters which are mainly aboutfundamental theories, development situation, existing problems and suggestionsfor solutions. Chapter one is concerned with the research of fundamentaltheories of network lending platform. Through comparative research frommultiple perspectives, this thesis clarifies the concept of network lendingplatform and defines the research subject. Through the empirical research of theoperation modes of network lending platform at home and abroad, the thesis discusses the legal nature of network lending platform and argues non-profitnetwork lending platform and the one of informal financial nature respectively.Chapter two introduces the development status of China’s network lendingplatform. This chapter is divided into two parts. The first part introduces thecharacteristics of the development of China’s network lending platform and thesecond part focuses on the analysis of the existing risks of China’s networklending platform through the discussion of legal risk, credit risk, operation riskand market risk.Chapter three consists of two parts: the status of the risk control system ofChina’s network lending platform and relevant foreign system. The first partconcludes the gaps and omissions of China’s system in the risk control ofnetwork lending platform from external risk supervision, internal riskmanagement and its industrial risk self-discipline management. The second partanalyses relevant foreign systems and experiences.In Chapter four, the author proposes suggestions for the risk controlsystem of China’s network lending platform. For concert with Chapter three,Chapter four is also divided into three parts according to external risksupervision, internal risk management and industrial risk self-disciplinemanagement. The first part mainly explains the improvement of relevant lawsand the choice of supervision principles and subjects as well as the constructionof such specific system as market access, information disclosure, riskmonitoring, risk disposition and market exit. The second part proposes feasiblesuggestions for risk management from the improvement of internal structuregovernance of network lending platform, the completion of internal riskevaluation system, the improvement of business operation system and theregulation of financial and auditing system. The third part discusses how toexert the role of industrial association in the risk control of the whole industrythrough the organizational and functional construction.The conclusion part concludes the major research findings of the thesisand reasserts the author’s thoughts and opinions about network lendingplatform.