Research On The Construction Of Risk Control System For Peer-To-Peer Lending Platform In China

Since the first domestic P2P platform-PPDAI launched in July2007, the development of P2P lending has already experienced more than seven years. After2010, the number of P2P platform and the scale of trading platform began to appear explosive growth in our country. The rapid development of P2P platform ease the situation of financing difficulty for the small-and-medium enterprises at some level and make a contribution to reasonable distribution of social funds;However,barbaric growth of P2P in the unconstrained environment also produced many problems. According to statistical result of "2013·Net loan industry report",we know that more than70events of P2P platform collapse and major principal runaway has occurred in2013,which only in October2013appeared more than20cases of platform collapse.Therefore, accelerating the construction of P2P lending platform risk control system and protect the interests of investors effectively become imperative!Under this background, this paper study the construction of risk control system of P2P lending platform in China.By carefully sort and summarize the P2P platform risk events in the last two years, analyze the main risks agglomeration point which P2P platform faced. Then, based on research of current situation and defects of P2P platform risk control system, combined with our current financial regulatory environment, we propose construction recommendations of P2P lending platform risk control system systematically.Risks of P2P industry include several following aspects:the risks which caused by the imperfect corresponding surroundings, incompleteness of the transaction process information, and the risks from investors. And the risks caused by the imperfect corresponding surroundings mainly include the lack of policy supervision system, poor normative of industry development, the challenges of network information security, etc. The risks which caused by the incompleteness of transaction process information mainly include credit defaulting on the borrower and unregulated management of platform. The risks from investors mainly caused by illegal money laundering and investor irrationality. Analyze platform risk events which concentrated outbreak in the last two years that we can know major risks in our P2P management are the lack of supervision which cause fuel moral hazard easily, and review the borrower loosely which lead to the higher solvency risk, and investor irrationality which lead to increase risk easily.At present, China’s regulators and the P2P platform itself are actively exploring the risk control measures of lending industry. But comparing with the fast development situation of P2P lending platform,the current situation of risk control measures still seems stretched. Specifically, severely underdeveloped regulatory regime,the lack of trade self-regulatory organizations, chaotic internal control system platform operation,and lack the precaution of investment effectively become the prominent problem of risk control process exist in P2P lending platforms in our country.On this basis,this paper proposed construction recommendations of P2P platform risk control system from both internal and external level. The construction of P2P external risk control system mainly include the establishment of supervision system,construction of the self-regulation and service system.In the aspect of supervision system construction,this paper builds a regulatory system which take the people’s bank of china as the highest regulatory guidance department,set the CBRC as the business regulatory main body,take the MIIT as main part of information security regulatory and set the SAIC as main body of registration approval regulatory.In terms of self-regulation system,learn from self-discipline management pattern of the banking and securities industry, undertake the functions of policy advocacy, self-discipline,employment training and information exchange from the construction of P2P lending industry.In the aspect service system,in the process of launching financial information intermediary service in the P2P platform,the platform needs innovation cooperation with different intermediary institution to decrease management risk of platform,make the different intermediary institutions display the proper function in collaboration with the P2P platform so as to achieve the purpose of prevention and defuse the risk.Other intermediary institutions is involved in the P2P service system including third-party web site certification body, third-party credit rating agencies,third-party guarantee or insurance institution,third-party fund custodian institution and third-party portals, etc. Meanwhile, the platform itself should establish a correct concept of development and establish a set of scientific organization and management system,and by improving the platform risk control techniques to reduce the platform operation risk.