Analysis The Risk Of Peer-to-Peer (P2P) Lending In China

With the development of Internet technology, e-commerce and integration of traditional industries has intensified. P2P network lending platform is Internet technology and traditional financial model of combining product. Because time is short to lend without collateral, P2P network lending platform can help get rid of the financing of small and micro enterprises difficult predicament, on the other hand can provide good investment opportunities for China’s small and medium investors. Therefore P2P network lending platform in our country gained rapid development.Although the development of the P2P network lending platform is full swing, the network lending industry risk research is inadequate. In this paper, through the history of the development of P2P network lending industry, we found that the current risk of P2P network lending industry in China is mainly concentrated in the legal risk, the network operation risk, liquidity risk, credit risk and information disclosure and other areas. The innovation of this paper is to establish the Logistic regression model of P2P network lending platform management risk in China. We find that has a greater impact on P2P network lending platform operational risk is mainly non-performing loan ratio and provision coverage rate. Generally speaking, the non-performing loan rate is higher, the higher the risk management platform; provision coverage rate is high, risk management platform is lower. For these risks, this paper puts forward suggestions of risk prevention:the protection of the P2P network lending platform service program, authenticity, security of the system, the interests of the lender etc. In addition, we need to establish a sound that it should be shared with the people’s credit database. What’s more, we need not only from the external industry, but also the establishment of industry self regulatory agencies to achieve mutual supervision within the industry. Ultimately these suggestions can promote the development of the P2P industry’s prosperity and sustained and healthy development.