Studies On The Risk Management And Standardize Of Online P2P Lending

Online P2P lending,as a new kind of business model combining micro-lendingservice and Internet, is a new product of the transformation of financial industry by theinformation technology.Its typical operating models are as follows: P2P platform servesas the information intermediary.Then creditors and borrowers make free bids or theplatform specify interest rate,making brokered transactions. Investors receive interestincome and bare the related risks; lenders repay the principal in the due time and P2Pplatform charges the intermediary service fee. The entire loan process is all carried outthrough the Internet. The world’s first P2P station Zopa was founded in the UnitedKingdom in2005.It was soon copied to other area. China’s first P2P station Yixin wasestablished in2006.Up till now. In China, P2P lending has gone through seven years ofrapid development.The P2P lending became extremely hot in recent years is because ofthe huge demand for micro-credit in China along with the existence of long-standingfinancial repression.Besides,the lending network also has its own edges like lowthresholds, free in trade and low cost. At the same time, P2P industry has gone through aperiod of uncontrolled development at this stage.P2P business model has evolved into avariety of new formats in China.The skyrocket development of P2P has indeed createdhuge profits,but has also brought about the aggregation of risks in the business.In2004CBRC confirmed for the first time that it would take charge of the supervision ofP2P,but has’t yet introduced any supervision,management measures or specific policies.Up to now,there is no clear requirement for access, quantitative criteria or regulatoryrules for P2P lending network.This paper will focus on the comparison of the most typical P2P business models athome and abroad in an attempt to analyze the status as well as the hidden risks of thedomestic P2P industry.And proposals to strengthen risk management and suggestionwill be put forward. The paper including five parts,the first of which introduces theresearch background of Online P2P lending network,including the beginning of P2Pmicro-credit,its status,the significance of the related study and research achievements athome and abroad. The next Chapter introduces the definition of P2P lending network,its features,classification of the operating patterns and the causes and meaning of itspresence.The first two parts form the theoretical basis of this article. Chapter III choosethe operating patterns of P2P lending at abroad, selecting two representative foreign and domestic platforms.The specific indicators including company size, the transactionprocess, its clients, rates and risk control. Chapter Ⅳchoose two domesticplatforms.Based on the study of Chapter III and Ⅳ，the paper States the currentsituation and characteristics of domestic P2P lending in Chapter V,pointing out the topfive risks faced by P2P platform now: liquidity risk,operational risk,credit risk,securityrisks and the lack of relative regulations and laws. My own advice is also given in thispart.