Study On Risk Analysis And Regulatory Strategy Of Internet Finance

Internet finance is popular with more and more people because of its convenience and high efficiency, and gradually become necessary payment and investment terms during human current life. As a supplement to traditional finance, Internet finance has played an increasingly important role in improving the financing environment of small and medium-sized enterprises, optimizing allocation of resources, improve transaction efficiency, and diversifying investments, providing new opportunities for the development of the inclusive financial system. However, with the rapid development of Internet finance, the risks of Internet finance have gradually started to become prominent. The nature of internet finance is finance range, the risks to Internet finance not only the risks of traditional finance,but also involve the risks to Internet itself,which significantly increases the difficulty in supervise. Currently,Internet finance in China is still in its infancy,and studies and supervise on Internet finance are not mature enough. Therefore,based on the characteristics and current development of Internet finance,and reference supervise experience of other core countries, I propose the countermeasures and suggestions that adapt to China’s national situation. The study results of this paper will provide guidance and theoretical reference for the stabilization of China’s Internet finance market.This paper consists of the following six chapters:Chapter 1: Introduction. First, the background and significance of this study were described. Then an introduction was given to domestic and foreign research status and study results in this field. Finally the research idea and method of this paper were presented.Chapter 2: Comparison of Internet finance and traditional finance. First the definition and characteristics of Internet finance were described. Then a comprehensive comparison was made between Internet finance and traditional finance, and the effects of Internet finance on traditional finance as well as the future trends in Internet finance are analyzed.Chapter 3: Analysis of risks to Internet finance. Based on the characteristics of Internet finance,four major risks to Internet finance were discussed and analyzed: technical risks,legal risks,credit risks, and currency risks.Chapter 4: Comparison of the major supervise modes of Internet finance of the countries around the world. The major supervise modes of Internet finance of the countries around the world were compared in terms of the pattern, level, rule, and content of supervise.Chapter 5: Research and suggestion on the supervise strategies for Internet finance based on China’s situation. Based on the current supervise situation of Internet finance in China and the modes of supervise of Internet finance in countries around the world, reasonable suggestions and opinions were proposed on the following four aspects of the supervise of Internet finance in China: the operation of Internet information technology, the laws and regulations, the credit investigation system, and the currency risks. These suggestions and opinions are of guiding significance to stable operation of Chinese Internet finance market.Chapter 6: Closure words.