Risk Management Study Of China's Online P2P Lending Platform

Internet finance is focused on the market information asymmetry and supply-demand asymmetry,taking the fresh vitality and the active change to Chinese financial industry.In recent years,P2P(peer to peer lending)has been attracted great attention,meanwhile the controversies are keep moving.Supporters hold that P2 P not only speeds up the financial disintermediation,breaks the barrier of market information asymmetry and reduces the cost of financing,but also enhances the convenience of fund-raising,improves the development of inclusive finance and pushes the innovation of financial market.However many critics believe that the Chinese-style P2 P is just the traditional private lending with the Internet coat face-lift.For lacking of the relative government management and supervision,the risk of the P2 P has been raised a lot,as well as the attractive from the high interest rate and the black box operation,all of this increased the risk of investors at present;the confusing market is calling for a standard management.No matter supporters or critics,the focus is how to control the risk of P2 P and ensure the security of capital.At present,the credit system and supervision is uncompleted;all kinds of problems come in to light,which produce a lot of negative effects.Bad risk control ability is a common problem of the P2 P internet lending platform,which hinders the health development of financial industrial.To a fast development P2 P lending platform,credit and safety are of great importance,just to depend on relevant department's supervision and restriction is not enough,P2 P lending platform itself need to detect the risk,analyze the risk and control the risk in time.In order to control the financial risk of the Internet P2 P platform,this paper comparatively analyzes the characteristics and risks between domestic and foreign P2 P platform,characteristics and risks between the Internet finance and traditional finance,and characteristics and risks between China four P2 P platform model,then takes YRD as a case study,focuses on risk issues and risk management methods,summarizes the several reasons of P2 P risk,including the in-completion of Chinese credit system,the in-completion of application technology,the shortage of P2 P professional talents,the in-completion of P2 P industry supervision,the shortage of high quality assets,the fierce competition of P2 P industry,as well as P2 P load mismatched and P2 P increasing credit degeneration,then this paper offers many suggestions on management,such as reducing the leverage ratio and balancing income and risk,optimizing the process of lending process and lower operating costs,following the laws and disciplines and avoiding the establishment of the capital pool,establishing social network and controlling information asymmetry,keeping information transparent and playing a role of interest rate liberalization,as well as being conscious and enhancing the capabilities of itself.This thesis writing is hoped to further enrich the risk management research,and by putting forward some practical solutions,this paper aims to help Internet financial platform to enhance the ability to control their risk,improve the efficiency of funds using meanwhile lower the rate of bad debts,thus enhancing the confidence of investors,promoting Chinese internet financial developing in a better and faster direction.