Research On The Credit Risk Of P2P Online Lending In China

P2P(Peer to Peer) online lending is one micro-finance lending model that gathers funds from surplus and provide the funding to people who need. Since 2005, P2 Pnetwork model in Europe and the United States such as Zopa, Lending Club have risen up, and then, it spread rapidly in the world scope. It entered China in 2007. Since then it has experienced rapidly development and caused widespread concern in the community, especially in the financial community. It is different from the traditional commercial bank credit and also different from the folk lending, it satisfied both the capital demand side and supply side, it becomes a useful supplement to the traditional financial system.P2 P online lending plays an important role for the solution of SMEs and personal loan and open investors’ investment channels. But in the past two years, the news of P2 P network lending platform running down makes more and more people aware of the risk of P2 P network lending industry. Among a lot of risks, credit risk is one of the main risks of P2 P network lending platform which is caused by Information asymmetry. This article selects credit risk as the breakthrough point, using quantitative analysis, qualitative analysis, and case analysis and other methods of research to research problems about credit risk of the industry.This paper is divided into six parts. The first part is an introduction, describes the background and significance of this study, research methods, innovation and deficiencies, and summary scholars literature at home and abroad. The second part has comprehensive reviewed the P2 P network lending platform, define its concept and characteristics, expounds the development process and the current situation of comprehensive operation. The third part focuses on the analysis of the formation mechanism of P2 P network credit risk, analysis of the formation mechanism of the credit risk from lending platform level, and borrower level, and industry aspects. The forth part uses the crawler crawl borrower information of Renrendai platform, and investigate the problem of P2 P network lending platform’ credit risk rating system by descriptive statistical analysis the original data. The fifth part, advise P2 P network lending industry on how to reduce the credit risk from borrower level, platform level and industry aspects. The sixth part, a summary of the thesis and prospects the development of the industry.P2P lending model in theory is still a new thing, the scholars at home and abroad of the research mainly focuses on the theoretical basis and practice mode, current situation, the advantages and disadvantages of its own, as well as the P2 P network loan legal system, there is little research for the P2 P network loan risk especially credit risk measurement and management. The innovation of this paper lies in analysis of the formation mechanism of credit risk through the quantitative and qualitative analysis method, and makes an investigation on an representative platform. And put forward feasible suggestions on the practice of credit risk management in China’s P2 P network lending company, and hopes to be able to provide valuable reference for regulators and participants in P2 P industry.