Study On The Influence Of Social Capital Factor On The Development Of P2P Lending

At present, with the macroeconomic turning down, Chinese financial system is in the urgent need of different forms of innovation by the impact of the global economic downturn and the transition of the economic pain in China's industrial structure. Since 2000, the Internet technology on the fire and the application based on the Internet and has covered more and more population & industry, which is being an important part of the basic life in the human society. And because of that, P2P lending was born..P2P lending also has a lot of risk. Now there are many fake P2P lending companies cheating and make the investors lost so much money. We find that most of those things happened not about the adventure of operations but moral hazard. And social capital has a unique effect on solving the moral hazard problems.Social capital plays an important role on traditional lending. We believed that it also works on P2P lending. This paper based on the economic background of Internet finance, intended to investigate the effect of social capital factors on P2P lending. Using panel data model to compare different regions of the P2P lending and make sure whether there are similarities and differences in the perspective of social capital.The conclusion is that appropriate and reasonable social capital helps to promote the development of Chinese financial market and credit P2P lending. Lack of necessary social capital or abuse of social capital will also affect the long-term development of the P2P lending and make P2P lending industry to decline. Then I put forward to some suggestions like strengthening credit construction, cultivating of social capital, improving the regulatory system and making a risk control system as the solution to solve the problem of moral hazard on P2P lending.