Research On The Legal Supervision Of P2P Lending

In our traditional financial industry, in order to get the lender’s loan approval, the borrower usually need to go to the lender’s office to applicant and negotiate the loan request directly and face-to-face. And under the traditional model of borrowing money is not the individual lenders have all, but their deposits received by starting into money. Because of the strict financial industry admittance system, money lending business is generally in the hands of commercial Banks. The so-called "private lending" also can’t be ensured its security of funds, because of the lack of detailed laws and regulations. The birth of the Internet can convenient communication between people and narrow the distance of the world. What is more worthy of mention is that while the application of internet technology in financial industry provides convince to our lives, it quicken the pace of innovation in financial product at the same time. Peer-to-peer (P2P) network is a kind of "personal" for individuals borrowing mode, but due to its relationship with Internet, it is difference from "private lending" patterns. Under the traditional model of "private lending", borrowers and lenders are generally familiar with each. However, in P2P mode, the personal relationship between the borrower and the lender is not close, moreover, network regulation itself cannot eliminate the defects, the P2P network is full of frustrations since it emerges.Law and regulations related to P2P network credit have not been issued in our country, however, the internet finance draw lots of attention from society, no matter in government work report or in National People’s Congress proposal. As one kind of business mode under internet finance, the successful development of P2P mode has great reference value on network finance. For this brand new mode in financial industry, this article analyzes its quality, character and legal risk. What’s more, this article use the legal supervision status in other countries for reference when discuss legal supervision problem. More importantly, in order to conclude the special point of legal supervision on P2P mode, this article compares this new credit mode to traditional ones. In 2013, P2P network credit grew rapidly in our country. Therefore, we should regulate the development environment for P2P network credit and perfect the relevant legal system to provide beneficial reference and experience for financial reformation in our country.