Research On Risk Assessment Of Online Marketplace Lending Based On PCA-BPNN Model

Online marketplace lendingis a kind of financial innovation.And it is significance to China's financial system.It also can make up the financing gap of small and medium enterprises and ease the demand of private capital investment.With rapid growth of online marketplace,competition between online marketplace lending increase continuously.The industry face lots of uncertain factors.Because there are fraud,running and withdrawals and other risk events,more and more people began to question the safety of online marketplace lending.The risk of the Online marketplace lending has clearly affected the development of the industry.Therefore,the evaluation of the risk of the online marketplace lending is not only conducive to the development of the network lending industry in China,but also conducive to the promotion of the stability of China's financial system.In the first,this thesisintroduce the development of online marketplace lending in China,including operating details and operation pattern.Secondly,this paper analyzes the main operating mode and its risk.Finally,the article summarizes the domestic and international regulation of the network lending industry.It also points out that it's important to establish a risk assessment model for the whole industry.Then according to the results of those qualitative analysis,it establish the corresponding risk evaluation index system.In the empirical analysis,the sample is sets of data about 160 online marketplace lendings.And taking account of the actual operation condition of the sample,those sample is divided into two cases of the normal operation online marketplace lending and the problem ones.There are 110 normal samples and 50 problem ones.The indicators of the sample platform to carry out the principal component analysis,the 8 main components that affect the risk of network lending platform.Then use Matlab software to establish the BPNN model,the 8 principal components as input neurons to build the BP neural network model,and the specific application of the model to be detailed analysis and description.In this paper,the PCA-BPNN model is applied in the risk assessment of the Online Marketplace Lending.It is a new method for the risk assessment of the P2 P lending.The model is usefulstakeholder to recognise and judgethe risk of P2P lending.