The Risk Of P2P Lending Industry And Its Prevention Research

P2P is always the most popular and controversial segments of Internet banking since it appeared in China in 2007.With a rapid and prosperous development,China's P2P net loan industry now faces enormous risk from both internal and external system.For the side of internal operations,it includes the lack of mature individual credit system,high liquidity risk leads by maturity mismatch and the lack of risk awareness,at the same time,high capital leverage ratio,ineffective management of customer capital and the unsafe Internet security technology also plagued this industry;from the side external market,the risks include unclear regulatory body,lack of legal regulation,disorderly competition,risk transfer by cooperation mechanism and increasing competition caused by loan interest rate intensify.Foreign P2P net loan industry also experienced the same development process and risks,but it has formed some advanced experience in management standard and banking supervision which can be used for reference for Chinese P2P net loan industry.As a typical mode of Internet banking,P2P net loan industry now is on behalf of the direction of financial innovation,which means the regulation "should reflect appropriate risk tolerance and encourage innovation,standardize the development then to reach the aim of avoiding excessive regulation and preventing the major risks altogether.The ultimate goal is to promote its healthy development through establishment of risk prevention system.It is a not ordinary year for P2P net loan industry in 2015,new law like "Interim Administrative Measures(Draft)for business activities of P2P net loan information intermediaries have coming out,Internet banking is now a part of "13th five-year-plan" and gain executive support.This means that P2P net loan has entered a new level.According to the "Interim Administrative Measures(Draft)",this essay will make a study and discuss about Chinese P2P net loan industry.Among them,some topics will be mentioned such as how to improve the information disclosure and credit system construction,how to design network credit database and many other issues.