The Research Of Effect Factor Of Risk Premium In P2P Lending Market

P2P lending,as a emerging industry of internet finance,uses both internet technology and big data to expand the frontier of lending market and to adequate the credit valuation system,perfecting the services of traditional financial intermediaries effectively.Therefore,it deserves affirmation that P2 P lending serving for Long Tail costumer and improving inclusive finance.However,the credit crisis and trust crisis bring us a profound lesson while P2 P lending is extensively developing.How to correctly realize the risk of P2 P lending is the key issue for investor and regulator.Previous research about P2 P lending focus on qualitative analysis of risk about individual borrower,only a few is concerned with interest rate pricing and fluctuation of interest rate.The idea of the article is that the key issue of interest rate pricing is risk premium,yielding from unsystematic risk?We need to fully understand the factors that influence the risk premium of interest rate.Firstly,this article introduce the three kind of P2 P lending operating models,the main pricing mechanism of interest rate,and discussing why the pricing mechanism of interest rate changes.Secondly,this article build a regression model including dimensions of P2 P lending market,macro-economy and related market through comparing multiple-dimension regression model,it explains the risk premium of P2 P lending rate based on the notably influencing factors.These factors include the ratio of investor and lender,average term of P2 P lending,industrial added value,CPI,average yield of interbank financial products.Finally,this article discus the appropriate interval of P2 P lending interest rate based on previous related theory and empirical analysis,it is between the interest rate of Wenzhou private credit market and benchmark lending rate between 6 month and one year.