Analysis Of Classified P2P Online Lending Platform's Credit Rating System

In 2007, P2P platform was introduced into China. P2P platform is the effective supplement of traditional financial market, and it is active in the domestic credit market. P2P platform highly satisfies the investment demand of private capital, and makes up for the financing gap of SMEs.So P2P platform strongly promotes the development of Inclusive Finance in China. However, more and more P2P platforms with high risks appear in the domestic market. Because investors lack information to identify good-quality P2P platforms, Investors are faced with great investment risk. Against this background, it is necessary to analyze how to build a credit rating for P2P platforms. The rating system can relieve information asymmetry in the market, and help regulator standardized the P2P industry development. This paper has three parts.The first part is the analysis of necessity for building P2P credit rating system. The credit and behavior of P2P platform is the key factor which can affect the development of P2P industry. Recently the platform's behavior has three problems. First, whether the information asymmetry between investors and financers is effectively relieved is depend on the technology, management and integrity of P2P platform.Second, P2P platform's information dominance relative to investors can lead to frequent occurrence of high risk platforms. Third, the role alienation of P2P platform increase the investment risk of P2P industry.The P2P credit rating system can relieve the above-mentioned problems.First, the P2P rating system can provide credit information to the market,so that make the right investment choice ,P2P platform can build market reputation and attract funds, and financers can select a good-quality P2P platform to get professional service. Second, the credit rating of P2P platform can help regulate P2P industry, and implement classified supervision.The second part is the establishment of P2P credit rating system.Because the rating purpose, rating method and rating index of existing P2P evaluation systems are not formal, these systems are not exact rating systems. We divide P2P platform into platform-type platform and intermediary-type platform according to the size of reimbursement obligation and fiduciary duty. Platform-type platforms get involved in money transactions between lenders and borrowers, so these platforms has capital risk. We refer the experience of micro-finance credit rating system to build P2P credit rating system based on platform classification.The third part is the specific implementation method of building P2P credit rating system. We make a comparative analysis of government-oriented way and market-determined way. Because the P2P platforms have no incentive to buy credit rating and credit rating agencies have no incentive to create P2P platforms' credit rating service, we suggest to build the credit rating system for P2P platforms through the government dominant mode, it will help regulators carry out hierarchical management in P2P industry.