Research On Credit Risk Of Peer To Peer Network Lending Platform

P2P network lending has rose in China since 2007,which is a creative way of financing.With the rapid development of Internet technology and the popularity of the network,network lending has become an important personal investment and channels of financing.By the end of December 2016,the number of operating platforms had reached 2448,and the cumulative turnover of the industry had also exceeded 3 trillion yuan.As China's financial market is still not perfect enough and the withdraw of the network loan industry exists,effective supervision and policy can not keep up with the pace of the development of this industry.Although the official has launched a series of initiatives to regulate the development of P2 P network loan industry in 2016,there are still many risks,and the most common one of them is the credit risk.For the healthy development of the industry,the study about credit risk issues is essential.This paper starts from the study of the reason of credit risks.firstly,it introduces the development and characteristics of P2 P industry in China.Secondly,it introduces the mode of operation of foreign network loan platform and domestic network loan operation,and discusses the influencing factors of credit risk.Thirdly,it discusses the development of credit risk in P2 P network.,taking Creditease as an example,discussing the different operating modes of Creditease platform,summing up its unique credit risk;Fourthly it is combined with the actual situation of the letter to choose the service fee,the duration of loans,borrowing interest rates,borrowing amount 11 indicators.Using trade dates to study the risks of P2 P network platform.Lastly give some proper suggestions based on the research above.The results of this paper show that the operation mode of the platform has a great influence on the credit risk,which is mainly reflected in the liquidity risk,the guarantee risk and the transparency.The cycling borrowers and the borrowers with a higher level of income have lower probability of default,the amount of the loan and the interest rate influence the probability of default positively,and the repayment period influences the probability of default negatively.According the theoretical analysis and empirical research of this paper,this paper argues that we should strengthen the construction of risk controlling platform,improve the efficiency of risk controlling,strengthen the information audit and data collection,improve the audit technology,strengthen the communication of the industry,carry out a certain policy of the network loan industry data sharing,improve the credit system,establish a sustainable long-term credit system,strengthen the supervision of related laws and regulations.