P2P Network Lending Risk Control And Prevention Research

With the rising wave of internet finance,the development model of the financial industry is gradually changing.The internet finance based on the internet technology provides efficient and convenient financial services for general public,and the P2 P network lending financing model is the typical representative.P2 P network lending plays an important role in broadening the finance channels and accelerating the process of financial liberalization.However,with the continuous development of the P2 P industry,the problems in the industry are constantly exposed,mainly presenting in collapse of platform,escape with money or other forms,and some have been involved in illegal fund-raising,which is usually caused by many factors,such as investors’ risk identification capabilities,the risk prevention of the platform,and the risk control of regulators.The problems,in the micro level,mainly refer to a single platform or the borrower’s risk exposure,and in the macro level,are principally the impact of market risk and policy risk on the industry.Based on the macro and micro perspective,this paper analyzes the main risk of P2 P industry,and gives some suggestions on the control and prevention of risk.At the macro level,the industry is mainly facing the market risk and policy risk.In the market risk,we believe that P2 P network lending market interest rate is an important index of observation.Based on the data from July 1,2013 to December 31,2015 of everyday,we establish GARCH model of different distribution to calculate the network lending market’s VaR and CVaR,and the result show that CVaR can more effectively measure the market risk and market risk is relatively large but decrease gradually.At the same time,we put forward that the fluctuation of market interest rate should be effective monitor and should establish CVaR risk early warning mechanism for monitoring and forecasting.For the policy risk,regulators need start from the norms of the industry.At the micro level,the controlling of the platform internal risk and the prevention of the borrowers’ credit risk will be the focus.In this article,from the typical operation model of platforms,we analyze that controlling the platform internal risk is mainly to solve the problem of operating mechanism,such as platform positioning,capital management,liquidity management and technical security,etc.The borrowers’ credit risk mainly relies on the platform control and the effective identification of lender.At the same time,the micro risk prevention strategies are also given one by one.Finally,this paper considers that the operation mechanism problem is the current existing problems of P2 P industry.With the policy of the industry clear,the development of the industry will inevitably move toward norms.And to standardize of the development,the market risk faced will become the main risk.So,to promote the formation of reasonable network lending interest rate pricing mechanism and control network lending rate fluctuations have significance to the current and future.