Research On Risk Evaluation Of P2P Platform Based On Factor Analysis

With the upsurge of Internet finance,P2P lending is developing rapidly in China and has become an effective supplement to the bank.The network lending become a major financing channel for micro enterprises with advantages of low access threshold and convenience.However,the rapid expansion of network lending exposes many risks,such as naked loans,fake loans,and the collapse of P2P platforms and so on.Therefore,it is necessary to further analyze the risk control ability of network lending platform and put forward more effective suggestions of optimizing risk control system.It is of great practical significance for protecting the interests if investors,regulating the development of the network lending industry and promoting the stability of the whole financial market.By combing the domestic and foreign literature,we find that there are few empirical researches on the risk control of P2P lending platform.However,the study of credit risk in commercial banks started earlier and provided experience for the empirical study of P2P platform.This paper analyzes the P2P lending risk and commercial credit risk,and compares the risk control model.We find that the risks faced by the two are similar,and the commercial bank's risk control model is more perfect.The banking industry has a regulatory system involving market access,market operations,and market withdrawal.It has formed a regulatory indicator based on capital adequacy ratio and established regulatory agencies such as the People's Bank of China and the China Banking Regulatory Commission.In terms of supervision,the banking industry is more comprehensive and scientific than the online loan industry.Therefore,this paper constructs the P2P platform risk control capability evaluation system by referring to the indicators and empirical methods of commercial bank credit risk assessment.This paper constructs a comprehensive evaluation system of risk control ability for network lending platform,selects fifteen initial variables of 100 platforms in terms of corporate governance and market operations,and evaluates the risk management capability of platforms through factor analysis.We draw on the empirical research on the risk assessment of commercial Banks,and take into account the characteristics of the online loan industry and the availability of P2P platform information.In terms of corporate governance risk,this paper sets six variables:shareholder background,number of directors,the number of employees,registered capital,geographic area,and proportion of problematic platforms.Market operations involve online loan platforms and online loan participants.We set five variables from the perspective of the platform:joining associations,operating hours,average daily turnover,default control measures,and diversification of business.The four variables set from the perspective of participants are the degree of investment dispersion,the amount of investment per capita,the degree of decentralization of loans,and the amount of per capita loans.We calculated the ranking of risk management capabilities of 100 sample platforms through factor analysis.Among them,Hongling Capital,Weidai,and Lujinfu are among the top three.It is found that there are significant regional differences in the development of network lending platform;the network lending platform in the eastern region has a better level of management and risk prevention.The operation ability is an important factor to influence the risk management.The longer the operation time of the P2P platform,the higher turnover,the better the risk control ability.It can also enhance the risk control ability by improving the governance structure and strengthening the user management.The platform can reduce the moral hazard of shareholders by setting up a complete board of directors and increasing registered capital to ensure the healthy operation of the platform.Decentralization is an effective way to reduce the risk of borrowing.The higher the ratio of the top ten investors and the top ten borrowers,the higher the credit risk faced by the platform.Platforms should actively expand the market to attract more investors and borrowers.