A Study On The Chinese P2P Borrower's Credit Risk Assessment And Prevention

Over the past few years,P2 P lending developed rapidly in our country.P2 P Lending is an innovative financial services and private lending generated by the combination of the Internet.High-yield of the P2 P lending has attracted more and more investors,but in our country,there is still stark credit risk management philosophy,the borrower's credit risk assessment is lower which has hampered the development of P2 P lending.At present,the credit risk assessment research on P2 P lending is more and more deeper,some evaluation methods have also been used on network platform to evaluate borrower's credit risk,but there are still many problems.One is the borrower credit risk evaluation index system is not sound;the other is much study still use the single analysis method,these seriously influence the accuracy of the borrower's credit risk assessment and indirectly influence the development of P2 P lending industry.Firstly,this paper describes the background and significance,and both domestic and foreign literature of P2 P lending credit risk assessment are reviewed.By drawing on previous study we found the main problem of the current P2 P lending credit risk assessment and propose research ideas and methods.By studying the current situation of the development of P2 P lending and credit risks in our country,there is still credit risk in P2 P lending,and analyzes the credit risk of the borrower.Secondly,we study the evaluation methods and the status of P2 P lending borrower's credit risks.By comparing the traditional and modern evaluation methods of borrower credit risk and analyzing the domestic and foreign P2 P lending and the current situation in assessment of the P2 P lending credit risk of borrowers in our country,we found that there are shortcomings of our assessment methods,we need to establish a scientific and effective methods of credit risk to evaluate borrower's credit risk.Thirdly,we study the theoretical basis of AHP analytic hierarchy process and BP neural network and build the credit risk evaluation index system the AHP-BP model to evaluate credit risk of the borrower.When we are building the model,we use the AHP method to get the results of the assessment,and make the results be the output sample data of the BP neural network model.and then these output samples are compared with the actual evaluation results of BP neural network model.It has been showed that the model is practicability and accuracy.Finally,there is a summary of the whole paper and we propose the suggestions ofpreventing P2 P lending borrower's credit risk,as well as the inadequacies of the existence and the prospects.