The Legal Thinking On Mechanism Of Solvency Risk Fund Of Internet Lending Industry

The P2 P lending has been attracted much attention since it was introduced to China.Because of high returns it has been well received by the got some Chinese people who are short of investment channels and it is with rapid development trend. But, a rapid development new industry is often accompanied by lack of supervision system and with non-controlled growth. That will cause threat to the vast investors and even China’s financial order. This thesis studies risk-sharing mechanism of the P2 P lending industry.Based on the actual situation of P2 P lending in China’s development this thesis provides corresponding solutions and legal advice to the solutions. Referring to the research methods, this thesis adopts the combining of theory and practice of P2 P lending, the author went to on-the-spot P2 P lending platform to investigation the operations of the industry, and acted as borrowers and investors to participate in the P2 P internet finance.The author analyzed the P2 P lending risks and put forward feasible suggestions to solve these risks with his practical experience.The text of this thesis consists of five parts. The first part is an introduction to the P2 P lending. Firstly, the author introduced present situation of P2 P lending in China and its market position with detailed data. Then, pointing out the alienation and risks of P2 P lending appeared in China, the author analyzed the features of all kinds of risks and put forward a classification of these risks so that to work out settlement mechanism against these risks.The second part explains the P2 P lending industry need to establish an effective mechanism of risk sharing and credit. Firstly the author pointed out the changes of external environment: the government departments at all levels have committed to rectify internet loan industry since 2014, so the P2 P lending platform companies who once made use of management policy faultiness must transform their business model.And as the national economic growth is slowing down it brings great pressure to their business of P2 P lending practitioners. Secondly the author pointed out the shortages of the existing P2 P risk control measures: law and regulation is missing, incomplete credit system, internet security technology level of internet security is low, weakconsciousness of self-discipline, and P2 P lending industry public opinion is easy to be misled and so on. Finally, according to the analysis on the current situation and development trend of P2 P industry, the author put forward to build a P2 P lendingindustry solvency risk fund so that to solve current predicament.The third part is the theoretical support to the design of mechanism of solvency risk fund of Internet loan industry. Through the analysis of possibility that P2 P lending investors may suffer from large-scale infringement, the author suggested to establish a kind of solvency risk fund for P2 P lending industry that is similar to the relief system of large-scale infringement damage compensation system in civil law.At the same time, according to the risk characteristics of the P2 P industry, and the author pointed out that P2 P lending industry solvency risk fund should have prevention functions such as accessing regulation, operation standard regulation. Then, considering the P2 P lending platform attributes of financial institutions, referring to the construction experience of financial market risk compensation and the safeguard mechanism, the author put forward that the P2 P lending industry should set up a powerful self-discipline organization convened by government public departments as administrative power involvement. This organization will undertake the monitor to market exit of P2 P lending industry. After theoretical analysis, this thesis illustrates the feasibility with practice experience by the use of existing mature market environment and policy environment in China to establish P2 P lending industry solvency risk fund. From the market environment, more and more P2 P lending companies choose the way of cluster development. They made combination of strong companies and have established their industry benchmark, forcing those enterprises that could not reach the high standard was eliminated by the market; From the policies and regulations, financial company monitors everywhere in the country support the development of small and mini financial institutions by formulating a series of preferential policies to attract P2 P lending enterprises gathered development and providing plenty of policies to the development of intermediaries such as P2 P lending industry self-discipline organization.At the same time, the funds as a mature financial system are already widely applied in our country for the financial risk prevention and control.In the fourth part, focusing on P2 P lending industry solvency risk fund system, the author discussed how to set up a series of mechanism that will be complementary to the management system of P2 P network loan management innovation in current China.Firstly the author showed the position and nature of the fund. And then the author provided a framework of advice to the operation and management of the fund. And, the author designs the function that the fund should have. Finally, the author put forward his opinions to the compatibility of funds and other rights protection measures.The fifth part is extensive conclusion Ideal P2 P lending industry solvency risk fund is a kind of public welfare fund that will be operated independently from the P2 P lending platform daily management and guided by the China banking regulatory commission, run by P2 P lending industry self-discipline society that set up by the big P2 P lending companies whose transactions are law-abiding. The P2 P enterprises should join into the self-discipline and should subscribe the fund so that it will become into an half mandatory industry standards so that the running of this fund will supervise the P2 P industry development, spread sincerity information, set a good image of P2 P industry.In routine time, this fund will be engaged in low-risk break-even value-added investment while a fund-subscribed member meets business risks, the fund will provide with urgent assistant to his risk. When a fund-subscribed member disappears, the fund will pay investors loss with priority. At the same time, the fund should have a good internal control system to avoid the hazard of moral risk and "adverse selection". Finally,the author pointed out P2 P lending enterprises set the aim to obtain enough profit as their biggest appeal essentially; sharing risks for the business enterprises the solvency risk fund should not bring too much financial pressure to them at the same time, which is the most important. To do this, of course, there are still many problems worth we continue to study.