Research On The Determinants Of Borrowers' Default Risk In Online P2P Lending

Economic growth and the development of Internet technology makes Internet banking become an integral part of China's economic and financial.P2 P network lending as a typical representative of the rapid development of Internet banking.Many residents have idle funds through the P2 P net loan platform to do investment and financing.Borrowers can not repay principal and interest on time,resulting in platform funding strand breaks,withdrawals difficult,even running phenomenon endless.Therefore,it is very important to study the influencing factors of the borrower's default risk,which can help the investors to choose the borrowing object rationally and reduce the losses caused by the default.The influence volume and comprehensive strength of ‘Renren Dai' take a leading position in the online lending industry.Every borrower's data is opened clearly.In this paper,we use the data obtained by the software "Logistic",and use the decision tree model and the regression analysis method to analyze the factors that affect the default risk of the borrower.Based on the background,purpose,significance and theoretical basis of the study,this paper analyzes the current situation of the default of the P2 P net loan borrowers and the reasons for the default.Then,it analyzes the factors that influence the default risk of borrowers from the aspects of the moral quality of the borrower,the borrower's authentication,the borrower's information and the borrower's information.Next,we use the decision tree and Logistic regression analysis to make empirical research on the data of all loans.The decision tree shows that the credit rating of the borrower and the level of education,the term of loans,interest rate,income and marital status have significant influence on the risk of default;Logistic regression analysis shows that the credit rating of the borrower,education level,income level,income certification and the amount of borrowing and default risk are negatively related to loan interest rate,loan term and default risk are related.On the basis of the investors from the reference factors,moral quality borrowers borrowers ignore natural information factors of infection,focus on four aspects of loan information and borrower income and rational investment risk reasonably put forward reasonable suggestions,and then for the P2 P network lending platform put forward a sound credit rating system,strengthen the borrower education and income audit the subject of long-term loan and control payment against the risk of default recommendations.