Research On The Risks And Regulation Of Online Peer-to-Peer Lending

P2P Online Lending Platform，in other words "person-to-person lending", as ainnovation model of consumer credit, was born in the era when the international creditwas tightened. Since coming into China in2006, it has developed rapidly, especiallyin2013with a blast wave. P2P Online Lending Platform in our country is based onthe original Anglo-American mediation model, but has extended to an innovativeformat. Under the premise of no specific regulatory legislation, no clear regulatorybody and even no improved industry self-rules, the innovative model of P2P LendingPlatform Network in China, is apparently beyond its proper role as an intermediary.The Chinese government supervisors put forward three red line requirements to theP2P Online Lending Platform: capital pool, illegal fund-raising and Ponzi scheme.Therefore, this paper, by comparing the P2P Online Lending Platform operating bythe Anglo-American and that operating by Chinese model, will try to analyze the threered line requirements. Furthermore, by combining with the experience of the Britishand American national regulatory P2P Online Lending Platform, this paper also try toexplore how to establish and improve the monitoring system of P2P Online LendingPlatform in China.This paper includes5parts.The first chapter is an overview of P2P Online Lending Platform. At first, itdefines the intension of P2P Online Lending Platform and generally descripts thedevelopment process, including the birth abroad, and the explosive growth in China. Secondly it explains the practical significance of the existence of P2P Online LendingPlatform.The second chapter is the comparison of P2P Online Lending Platform operatingmodes. Firstly, it introduces the business mode of the first P2P Online LendingPlatform in the world-Zopa, which also represents the business mode of P2P OnlineLending Platform in traditional sense. Secondly, it summarizes business modes of twolargest P2P Online Lending Platform in USA, LendingClub and Prosper. Thecharacter of such modes is taking Notes as investment targets. On the basis ofcomparative analysis, it summarizes the creative and extensive business modes of P2POnline Lending Platform in China.The third chapter analyzes the connotation of3red lines of P2P Online LendingPlatform’s operation given out by Chinese regulators with the examples. It includesthe concern and the risks of capital pool, illegal fund-raising and Ponzi scheme andanalysis of potential risks of P2P Online Lending Platform in China.The fourth chapter is about the comparison of regulation of P2P Online LendingPlatform in different countries. First, it summarizes the regulatory status in the UnitedStates and the United Kingdom and their characters. Secondly, it analyzes theregulatory status of China, which refers to the absence of regulator, the hysteresis oflegislation and the imperfect of industry self-regulatory.The fifth chapter proposes recommendations and suggestions of theestablishment of P2P Online Lending industry regulatory based on an analysis of thepotential risks and inadequate supervision above.