The Risk Management Of P2P Network Loan

The rise of Internet banking is an inevitable result of the reform of financial system and the development of Internet technology. It is also the key period of the reform of China's financial industry. With the rapid development of economy and the continuous progress of network technology, the Internet technology quickly integrated into the financial industry and developed into a combination of traditional financial products-Internet banking. P2P network lending as a business model of Internet banking, develops more quickly compared with other business models. Because of the rejection from formal financial system and small and micro customers making small loans, mortgage loans and short-term working capital needs new financial model. The P2P network lending, as a new financial model, gets the explosive growth. Since the second half of 2012, different patterns and diverse kinds of P2P network lending platform in China developed quickly. And especially in 2013, the development speed and scale far exceed all expectations. At the end of 2015, network lending platform number increased to 3844. Compared to the 2014, it increased by 107%. The turnover exceeded 100 billion and the number of people who invest network lending reached 13.5 million. Because network lending makes up the formal finance which can not be covered and as a part of folk finance, it can be regarded as supplement to the formal finance, its development has great social benefits. However, it also has many problems. The issue platform reached 896 in 2015 which is 3.26 times compared to 2014, the risk can not be ignored. Academia, industry and the financial regulatory authorities become concerned on the risk of P2P network lending. Domestic scholars are concerned about how to control the risk of P2P industry so as to promote the healthy and sustainable development from the regulatory system and industry self-discipline and P2P network lending credit risk. Most scholars found that the credit risk is the main risk in P2P industry.However, the whole credit system of our country is not perfect and the P2P network lending platform has no access to credit system at present. Therefore, how to establish a scientific and effective credit risk index system for P2P network lending and improve the level of credit risk management is a urgent need to our country.This paper attempts to study the deep-seated reasons for the rapid development of P2P network lending, contrasts the similarities and differences between domestic and foreign operation mode, analyzes the current situation of the development of P2P network lending industry in our country, investigates the risk it faces, tries to find the measures of credit risk control through the comparison of domestic and foreign P2P industry, then combines with China's social background and the characteristics of the industry, establishes a P2P network lending credit risk index system to validate the index system of the rationality and applicability, at last judges the development direction of our P2P network lending industry, and puts forward some suggestion.