A Comprehensive Analysis Of The Local Regulatory Supervision System Of P2P Online Lending

With the developing of Internet applications and the maturing of the credit environment,the online lending market is growing rapidly.People who have demand on lending funds could conclude the lending transaction through the Internet.With the gradual increase in the volume of spontaneous online lending,there has emerged P2 P online lending platforms,which is a third-party information intermediary that helps lenders with idle funds to match with borrowers with financing needs.These platforms emerged in the form of companies.They earn commissions by facilitating online lending transactions.Because of their flexible and convenient trading methods,they are highly efficient and have been favored by the majority of capital traders,which grows rapidly.By the end of February 2018,the cumulative turnover of the P2 P lending industry has reached 6611.144 billion yuan.The emerging P2 P online lending has developed into a significant financial model.However,the news about failures of P2 P online lending platforms have always been heard.Although the result relates to its internal management,but also the main reason is industrial weak supervision.This paper first introduces the basic theory of local supervision of P2 P online lending,summarizes the related content of P2 P online lending from all sides,and then elicits and expounds the reasons and importance of strengthening local P2 P online lending supervision.Then from the legal point of view,the status and existing problems of P2 P online lending in China are analyzed and sorted out.There are several departmental regulations about P2 P online lending,while these regulations could only be the guidance as the regulatory basis,because it lacks of practicality and pertinence.Most importantly,those functional departments of local governments are the specific implementers of the implementation of policies.Whether the spirit of the central regulatory policy can be implemented depends on whether the local supervision is effective.Because some local governments did not issue relevant foundations or some local governments have issued corresponding basis,but their content is still not comprehensive,which makes the supervision role of government cannot be played effectively.These factors lead to a large number of issues such as liquidity risk,technical risk,illegalfund-raising risk,information leakage risk and so on,which has negative impacts to the financial market and society.Overall,perfecting the local supervision of P2 P online lending has become a highlight issue that needs to be addressed.It is not only benefit for P2 P investors,but also play a significant role in maintaining social economic order and promoting P2 P stable development.Then,by comparing and analyzing the relevant contents of the British and American P2 P online lending regulation,combined with the reality of China,we critically absorbed the essence of its essence.Finally,from the four aspects,we should give full play to the functions of the subject of supervision,improve the legal and regulatory basis of the corresponding supervision,supplement the targeted methods of supervision and improve the auxiliary mechanism of supervision,it puts forward some suggestions to improve the local supervision of P2 P online lending in China,with a view to enriching the research results of P2 P online lending regulation,expanding the scope of the research on financial supervision and putting forward corresponding countermeasures to solve specific problems.