The Research On Regulation Of China's Peer-to-Peer Lending

P2P(peer-to-peer) internet lending, also known as ‘social lending', is a practice of lending money to unrelated individuals who have financial needs. It takes place online through peer-to-peer lending companies. These companies are responsible for borrowers credit checking, and charge for services.Resent years, the amount of P2 P loan companies increased rapidly. However,huge risks come along with the explosion of this industry. Due to lack of regulatory policy, if the borrower was unable to repay his loan in time, the consequence might be serious. The investor would suffer a complete lose. The P2 P companies would fall into a difficult situation of capital chain crack and even bankruptcy. Sometimes, it may constitute commercial fraud. According to the data, in 2014, there were 275 P2 P companies declared bankrupt because of various problems, including the withdrawal difficulty, platform collapse,business owners fled etc.Currently, the call for the introduction of regulatory documents about p2 p Internet loan is gathering momentum. In the afternoon March 12 th, 2015, the central bank governor Zhou Xiaochuan said Internet banking should gradually establish rules for Internet business, but not to be too advanced. Technology is developing rapidly; it is difficult to predict all the problems that would occur.What we can do is to establish basic regulatory rules consisting with the industry explosion. Further study is needed to draw the specific terms.How to draw up the specific provisions remains to be further studied.This paper is based on the above issue, on the basis of theoretical researchabout the topic above, and carried out mainly on discussion in the following four areas discussed aspects:Firstly, I will starting with from the Internet financial regulation theory,defines the concept, summary ?features and types of Internet banking finance,starting from the theory of financial supervision to analyzes the theoretical basis of public management theory foundation about financial supervision.Secondly, this paper will review the development of P2 P industry.Contemporary regulation system includes window guidance, financial consumer protection and industry self-regulation of the P2 P, there are five major drawbacks have been highlighted: the lack of clear regulatory policy, unclear operating restrictions, the lack of uniform industry standards, imperfect credit rating system and financial consumer protection.Thirdly, it will introduce the advanced foreign experience of credit monitoring of P2 P including the United States, Britain and France. We may make some adjustments of our system according to our national situation. The comparative analysis will be presented in following five areas: System Construction, credit management, business restrictions, industry self-regulation and consumer protection.Fourthly, it advice some countermeasures to improve our credit P2 P Internet loan regulation, for example: develop regulatory policy, make clear regulatory approach; establish P2 P credit system, to achieve credit information sharing;build P2 P internet loan supervision system, strengthen routine monitoring;perfect P2 P self-regulation, use the industry associations; sound financial consumer protection measures.