Research On The Legal Superivision Systerm Of P2P Lending Platforms

P2P lending platform facilitate lending by allowing individuals acting as lenders to invest in loans to individual borrowers. It is a kind of non-formal financial institution which been growing in the recent years because of improvement of small loans technology and the rise of technology innovation. What P2P lending platform provide includes P2P exchanges and loan facilitators, facilitating lending between strangers which is hardly to achieve in the past time. The emergence of P2P lending platform promotes the financial participation model to meet the huge market demand, subject to formal financial model cannot meet the traditional microfinance and personal finance and investment desire, having a big "long tail" effect and positive impacts on the construction of multi-level capital market and financial inclusion. However, on the other hand, the rise of P2P lending platforms also brings the risk cannot be ignored, such as suspicion of illegal fund-raising and usury laws and other risks, credit risks due to the imperfect credit rating system and platform business model conflicts of interest arising from natural and so. To make the P2P lending platforms to continue to play a good role while reducing risk, regulators should make P2P platform into their regulatory scope to solve the problem of regulatory legal gaps and provide an effective guidance and supervision.This paper is divided into three parts.The first part introduces the basic theory of P2P lending. Firstly, it sorts out the development and evolution of P2P lending, and explains the concept and heartland of P2P lending business. Due to P2P lending is still in rapid development currently, there is no authoritative definition. Therefore, grasping the heartland of P2P lending platform is very critical to the following analysis of P2PLending platform’s legal nature, the risks and setting up regulatory systems. Secondly, it introduce s and analyses the major domestic and foreign P2P lending platform model, then comparing with other similar activities formal financial institutions provide to determine P2P lending platform as non-formal financial institutions. Therefore the risks types and extent of risks are different from those of regular financial institutions. For such differences, regulators cannot simply directly apply the existing regulatory which is for the supervision of financial institutions to P2P lending platform.The second part of this paper analyses the risks of P2P lending platforms. This section mainly analyses the existing or potential risks of P2P lending platform, including legal risks that may be involved in operations, customer funds risk due to regulatory gaps, credit risks due to our imperfect personal credit system and credit rating, and credit risk resulting from the platform itself credit risk, liquidity risk and future securities development path brings unknown risks and so on.The third part is to analyses how to perfect the regulatory regime for P2P lending platform. First, it sort out and analyze the United States’and the United Kingdom’s, representing foreign countries, regulatory regime for P2P lending platform and the current regulatory attempts in China; Then followed by analysis of the aforementioned regulatory and attempts and draw some suggestions for the principles of improving P2P regulatory system; At last proposes specific regulatory proposals for regulatory regime for P2P lending platform.