The Credit Risk Of The Borrower’s Credit In P2P Network

With the development of information industry, P2 P network lending has been rapidly developed through the internet. According to the statistics, as of November 2015. China has 3109 P2 P network lending company, than by the end of 2013 638 over more than doubled. With the increasing social awareness in the industry, the future of the number and amount of P2 P network lending companies in China will continue to grow rapidly. However, at present our P2 P network credit risk management issues is serious, lacking of professional risk management personnel, who audit on the borrower’s credit mostly limited to the upload information of borrowers. Credit rating is largely dependent on the subjective judgment of the risk control personnel and audit staff, which cannot meet the requirements of the transaction participants in the loan security. Therefore, it is urgent to establish a scientific and effective credit risk assessment method and improve the credit risk management level of P2 P network in China.Firstly, this paper analyzes the current situation of the development of P2 P network lending in China from the background of the rapid development of Internet banking in China. The formation mechanism of P2 P network credit risk is revealed from the characteristics and the causes of the credit risk in P2 P network. Secondly, it has combed the domestic and foreign credit risk assessment method and the credit risk evaluation model, select the logistic model which is suitable for P2 P network credit risk assessment. Again, this paper to pat the loan company were empirical research, through the decision tree model of the breach borrower characteristics were analyzed,combining with logistic model to find the breach the key influence factors, construction of the borrower’s credit risk evaluation methods, through the sample test, validation of the model of credit assessment of the situation. Finally, the P2 P network lending risk control to provide specific policy recommendations.The characteristics of this paper are to select the credit risk of the financial model of the emerging P2 P network lending as the study object. At present, the research on credit risk assessment and control of P2 P networks is rare. In addition, combined with the decision tree model and logistic model to find out the borrower’s default behavior of the key influencing factors and the borrower’s credit risk prediction model, which also contains the explanation ability of the decision tree and logistic model results will be more accurate.