Study On The Moral Hazard Of P2P Lending

P2P online lending is an emerging credit model,which is characterized by the integration of traditional lending and Internet,which largely makes up for the disadvantages of traditional lending model coverage.And because of the different national conditions,P2P online lending faces many moral risks in China,such as the P2P lending platform fraud,run away,management difficulties,frequent failures and higher rate of bad debts,thus causing a widespread social concern.Therefore,basing on the economic and ethical dimensions,the author makes a comprehensive analysis of the moral hazard problems in P2P network credit and puts forward corresponding measures.The paper mainly includes the following aspects:First of all,this paper illustrates the background and significance of the research,and provides theoretical support by combing and summarizing P2P current research results of domestic and foreign,and then puts forward the innovation and insufficiency of the study.In the second place,under the guidance of the market economy theory,this paper analyzes market transaction principles which should abide in the P2P lending transaction process,then presents and analyzes moral norms and obligations that should be complied from the perspective of moral P2P industry.On this basis,after comparing the risk of moral hazard with P2P network moral risks,the paper puts forwards that the moral hazard of the P2P network is an behavior that pursues self-interest and endangers others or social interests at the same time.Then it points out that the moral hazard of P2P online lending is characterized by complexity,concealment,spontaneity,universality and objectivity.Thirdly,domestic and foreign lending to P2P network platform operation mode and risk control measures are analyzed respectively,and foreign lending to P2P network platform operation mode can be divided into the following three kinds:Zopa,Prosper,Kiva.There are several kinds of P2P lending models in China,such as information intermediary,debt transfer,guarantee and risk reserve.On this basis,it found that there are moral hazard problems in P2P online lending platforms,borrowers and regulators.Fourthly,the factors that cause the formation of P2P lending moral hazard are analyzed from the characteristics of P2P industry,social environment and the limitations of "human".The author found out that there are moral hazard problems due to wrong information on the basis of the analysis of the features of financial industry.Besides,as is known,the binding force of the contract is not completely when we makes a contract,which will cause industry irreversible moral hazard problems.Since 2015,the supervision of P2P online lending has been strengthened,which has suppressed the emergence of moral hazard to some extent.However,due to the differences in the cultural environment,institutional environment and the management system within the platform,the moral hazard problems of P2P industry are still common.And as for borrowers,due to individual differences,as an independent person,the borrower pursues his/her own material needs satisfied,ignores the moral hazard problems,and lack of moral constraints and practices,which are likely to lead to the situation in the unconscious violate the interests of others,thus causing moral hazard problems.Fifthly,according to the former analysis of the moral hazard problems and reasons which exist in P2P network platform,the borrower,and regulators,it can be concluded that the first step is to identify basic ideas and paths in order to prevent moral hazard.System is the fundamental,education is the base,discipline is the key.Therefore,it will fundamentally improve the system construction of P2P industry,and cultivate and establish an industry credit system.Finally,it finds out that the moral hazard of P2P online lending is caused by people,and points out the importance of moral conscious construction.Moreover,it suggests that the morality education of the individual is conducive to the voluntary compliance with the moral code of conduct,while the moral self-discipline of the platform is more capable of preventing the occurrence of such phenomena as platform running and illegal fund-raising.In short,from the negative aspect,improving the system of prevention and strengthening government regulation plays an important role in reducing the moral hazard of P2P lending.On the positive side,it is of great importance to improve the moral awareness of P2P lending practitioners to prevent the moral hazard of P2P lending.In the construction of P2P lending moral hazard prevention system,it will play a great role to strengthen the professional ethics construction in the industry,especially to improve the employees' own moral cognition and quality.