Research On The Development Of China's P2P Network Lending And Its Regulatory Countermeasures

Peer to peer lending(P2P lending) is a emerging,convenient and efficient borrowing and lending business model which works through Internet.It was created in 2005 in British.In these 7 years , the P2P lending is popular all over the world. In 2007, the first P2P lending platform in China established, and that is Pai Pai Dai.After it, P2P platforms mushroomed in large numbers in the domestic.This new thing brings huge potential risks due to the fuzzy identity, legal absence, lack of supervision and non-standard internal governance, as well as vitality and prosperity for our lending market. As a financial innovation, timely regulatory and legal follow-up is very urgent. By introducing the overview of the P2P lending, analysing the main modes of P2P lending and the legal relationships, dissecting the risks inherent and status quo of regulation, combining with foreign regulatory experience,this paper aims to propose suggestions to improve the legal and regulatory system of P2P lending.The paper is divided into four parts content:The first part mainly introduce the overview of P2P lending. Firstly, it analyses the concept of P2P lending, notes that traditional understanding of P2P lending has become narrow, and proposes that people should view P2P lending from a much broader point. Secondly, it describes the historical evolution of P2P lending from the rise and development about it. Then, it analyses the features about the P2P lending such as fast flowing of information, convenient transaction procedures, small amount of money, short-term of loan, low threshold, wide covering range.Finally,it elaborates three aspects of value and significance about P2P lending, that is, meeting the demand for personal funds, improving the social utilization of idle funds and developing the personal credit system.The second part introduces the pure intermediary type,compound intermediary type and non-profit type of P2P lending,and analyses the operations of three main modes.At the same time,it analyses the legal relationship among the P2P lending,including borrowing contractual relationship, service contractual relationship, secured contractual relationship, and insurance contractual relationship.The third part analyses the risk P2P lending may cause and it’s status quo of regulations from the apoint of view of borrowers,lenders,intermediaries and service side,the secured party and the insurance side.In the fourth Part,I present the proposals to improve legal regulation of P2P lending on the basis of the foregoing discussions and supervision experiences on P2P lending in foreign countries. My proposals are: improving the criminal and civil laws and regulations related to P2P lending, establishing a set of legal system including access, day-to-day operations and exit mechanism for P2P lending; bringing the P2P lending platforms and its business into the scope of government regulation; improving self-regulation of P2P lending platform; improving our personal credit system construction.