Research On Risk And Regulation Of The P2P Lending Industry In China

P2P lending is a kind of peer-to-peer lending behavior, occurring between equivalent subjects, without the involvement of any third party(such as banks), and it has two operational goals: one is to satisfy the financing of target customers within the financial system, and the other is to realize the supplement to the financing channel of the traditional financial industry. P2 P lending industry started in China since 2007, but it failed to realize the expected development due to the loss of supervision system. After the explosive growth, because of the risks of P2 P lending, the P2 P lending industry ushered in a wave of bankruptcy in 2013. Owing to the great differences in the target customers and business attribute between P2 P lending and the traditional financial service, the special management aiming at the risk control turns to be extremely important. In order to standardize the P2 P lending industry and promote the healthy development of P2 P lending industry, CBRC(China Banking Regulatory Commission) drafted Interim Measures of the Business Activity Management for Internet Lending Intermediaries(Exposure Draft)(Hereinaft er referred to Exposure Draft) together with the Ministry of Information, Ministry of Public Security and State Internet Information Office on December 28, 2015. Issuance of Exposure Draft implied that P2 P lending industry in China would enter the standardization operation and supervision, which is of far-reaching significance for the long-term development of P2 P lending industry in China.P2P lending industry is an emerging field of the financial industry and an indispensable part of the financial development in China, bringing both opportunities and challenges to the financial industry. Before the official regulation of P2 P lending industry, it has always been in mixed regulation-free state. After the release of Exposure Draft, the risk control and regulation of P2 P lending industry will also be in constantly innovation and development stage. The deficiency of technology and undefined specific regulatory rules will be the issues in the future regulation. In this paper, industry risk status is analyzed comprehensively through the systematic conclusion of P2 P lending risks from a new perspective by combining the existing literatures and data in wangdaizhijia.com. Besides, suggestions are proposed for the perfection of the future supervision of the industry.