The Influence Of Peer-to-Peer Lending On Money Supply

The development of information technology and internet has greatly promoted the innovation of financial field,and a series of traditional financial products have been developed into new forms of Internet financial products with the help of information technology.It is in this financial innovation background,Peer-to-peer network loan appears.Peer-to-peer Network Loan is a new type of lending model which uses peer-to-peer technology to lend the funds to the demand of the fund,it is different from the traditional financial institutions ' borrowing mode,mainly using the Internet platform to match the information of the Fund suppliers and the funds ' demand,and to promote the loan completion.In all kinds of financial products,Peer-to-peer Network loan relies on its low threshold,low cost and other characteristics in the world's rapid development.As a new mode of financial service,Peer-to-peer Network loan can not only alleviate the present situation of personal financing and small and medium-sized enterprises financing difficulties,but also absorb social idle funds,quicken the flow of funds and promote economic prosperity.Money supply refers to the amount of money in a country at some point in time for the social economy to operate smoothly.As the intermediary index of monetary policy in China,the central bank will formulate a series of monetary policies according to the change of money supply to guarantee the national economic stability.However,in recent years,Peer-to-peer network loan industry has been expanding,according to the first Net loan website published in December 2017 monthly report,Peer-to-peer Network loans accumulated turnover reached 7,331,002,000,000 yuan,the total number of platforms reached 7,126,absorbing the society's large amount of idle funds,speeding up the speed of money,but this part of the fund is not counted into the money supply of the statistical range,free from the government regulation,its direction is not clear,so that the existing money supply as a monetary policy intermediary target Effectiveness is reduced.In this case,it is of practical significance to study the influence of Peer-to-peer network loan on money supply.This paper mainly focuses on the development of Peer-to-peer network loans and money supply in China,from the theoretical and empirical aspects of Peer-to-peer network loans to the impact of money supply,and put forward relevant policy recommendations.Theoretically,Peer-to-peer network loan will affect the money demand and the money supply,enlarge the monetary multiplier,reduce the bank loan balance,weaken the controllability,mensurability and correlation of the discount policy and the intermediary target of the monetary policy.Empirical aspects This paper uses the monthly data from May 2013 to December 2017,selects the money supply M2,M1,M0 and financial institution loan LOAN four variables to establish the VAR model.Through empirical research,it is found that: Peer-to-peer Network loan and money supply are all one-way causality,but there is a two-way causal relationship with financial institution loan loan,Peer-to-peer network loan has short-term influence on narrow money supply M0,M1 andfinancial institution loan,and has long-term influence on the broad money supply M2.Based on this,the paper puts forward some suggestions from perfecting the intermediary target of monetary policy and strengthening the supervision of Peer-to-peer network loan.