Research On Risk Control Of P2P Lending In China

P2P lending means that "peer-to-peer lending",it does not rely on traditional financial institutions, but to help both lenders and borrowers to deal directly through the Internet platform, which originated the "Grameen Bank" in Bangladesh that was founded by professor Muhammad Yunus. There is still no clear regulatory legal documents aimed at P2P lending in China, combined with the social credit system is not perfect, therefore we need a system including borrowers credit rating and lending platform credit risk control.This paper focuses on the study of the following part:firstly, the development of P2P lending and operating mode of the domestic and foreign. Secondly, the comparison of risk control in P2P lending of the domestic and foreign, the problem of P2P lending risk control in China. Thirdly, to optimize the borrower credit risk rating, and build risk prevention system of lending platform.This article focuses on according to AHP (analytic hierarchy process) to structure model of credit risk rating of the borrower and optimize system for lending platform of risk prevention. Judging from the results of the paper, AHP pay more attention to the credit history of customers such as pay-off items, overdue items, the maximum number of days and can support response liquidity indicators such as month repayment and debt to income ratio, etc. It meets the borrower’s risk control requirements. At the same time, the platform of risk prevention system constructed through the way is in accordance with the reality. Finally, the paper comes up with the policy recommendations and supervision principles of P2P lending in China.