Legal Regulation Of P2P Lending

P2P Internet lending is a product of the Internet technology and the combination of private lending, the world’s first P2P Internet lending platform is founded in 2005 in the British called Zopa, P2P model will gather a wider range of people together, through the issuance of loans and investment information on the platform of P2P, both lenders and borrowers are separated by thousands of miles, still can take part in the same loan project, the original need to rely on geopolitical relations or acquaintance condition is broken, higher than bank deposits and financial products with return, P2P model is more and more popular handbags. In 2007, a pat on the loan will be P2P on-line Internet lending platform formally introduced into China, become the first domestic pure online credit lending platform, unsecured, then gradually established in Hongling venture, peer-to-peer lending, should the letter, Lu Jin Suo as the representative of a large number of P2P Internet lending platform.8 years, crazy growth of China’s P2P scale, has become a hot topic in the field of Internet finance. As of the end of 2014, the scale of P2P Internet lending platform in China reached 201.26 billion yuan, an increase of 117%, compared to 1.95 billion yuan in 2010,an increase of 100 times.Behind the P2P Internet lending,crazy growth is accompanied by the risk of the emerging nature of P2P lending from the Internet, information intermediary in the developing gradually, gradually involved in lending, as credit intermediaries, due to the lack of supervision of financial model innovation and relevant laws and regulations lag, P2P Internet lending easily to break the red line of the law, leading to crime, including legal risk and credit risk, because it involves a wide range, once the outbreak of systemic risk, can easily lead to bad consequences. Therefore how to regulate the Internet, how to control the risk of lending P2P, how to improve the relevant legal system as soon as possible, become an urgent problem to be solved. First, the legislation, the legal nature and clear P2P Internet lending platform, scope of business, to further standardize the P2P Internet lending market; second, if the P2P Internet lending platform in our country is information intermediaries, so there is no need to make the minimum standards for the capital restrictions, but most of the current P2P Internet lending platform in China to participate in the lending relationship, greater risk, can set the minimum capital allowance P2P Platform Co set up, can be appropriate to reduce the standard; third, improve the credit system construction of our country, to avoid credit risk; fourth, P2P platform must be for investors to fully explain the risks that may exist, the prohibition of the use of "preservation", "the highest income" propaganda words to mislead investors, according to the borrower’s loan projects, the risk rating method, and the risk of investors bear ability, evaluate, and loan programs, refused to assets does not meet the investor on the risk level of higher borrowing to invest in the project. I hope the research and suggestion on relevant issues can provide help for our P2P Internet lending.