Study On Supervision Of P2P-Lending

P2P lending is a product consisting of internet technology and traditional lending between population. Based on the characters of internet, P2P lending connects it’s users from different area or time, which breaks the geographic limit, develops markets and serves individual or small entrepreneur. P2P lending could has both long term sustainable profit and benefit for development of small-sized enterprises. Since the first p2p platform "Pai Pai" was founded in 2007,the development of P2P in China remain an amazing increasing. However, more and more platform, which operates against the low, collapsed because the supervision falls behind the development of P2P lending. On account of diversification of p2p platform and asymmetric information, the risks of p2p lending is hard to be controlled. Panzi scheme or financial fraud appeared in local market of Yunnan province, which has its own characters based on local economic and politic situation. In summary, it is worth to study how P2P lending market should be supervised.In this paper, it gives the fundamental concepts about p2p lending at the very beginning. Then financially developed countries such as USA and UK is researched. In addition, the varietal form which is commonly in China is studied, so could be concluded that the largest risk we face comes from entrepreneurs’morality. Combining with writer’s career experiences in a local p2p company, this p2p platform is studied as a case, Some supervising vulnerability would be summarized in this process. At last, the experiences of American and British supervision of p2p market is analyzed, so could writer give some constructive advices such as the real-name system, credit investigation system, negative punishment and so on.