Research On Risk Assessment Of Online Lending Institutions

Internet lending is a major component of the development of internet finance.The important means of achieving inclusive finance is playing an increasingly important role in social financing.However,due to the frequent problems of online lending institutions,this new type of financing is still difficult to improve the availability of financial services for small and micro enterprises,so it is particularly important to evaluate online lending institutions.Internet lending is a kind of financial innovation in the context of "Internet + Finance".Its essence is still finance,and its core is still the pricing of risks.The risk assessment of Internet lending is mainly divided into the evaluation of online lending institutions and the evaluation of the lenders.The basis for the evaluation of lenders is the credibility of lending institutions.The evaluation of borrowers that are not established on the basis of the trustworthiness of online lending institutions is invalid.At present,on the one hand,there is no professional institution for evaluating lending institutions in China.On the other hand,the existing evaluation agencies also have relatively outstanding problems,which has led to the fuzzy status of the evaluation of online lending institutions.Network lending institutions in the process of lending should be connected with the supply and demand of both borrowers as a information intermediary to charge the corresponding fees.In the actual borrowing process,the lender selects the lending institutions before lending money.Therefore,the network lending institutions passively act as guarantors which cross the limits of information intermediary.It act not only as information intermediaries but also as credit intermediaries.Therefore,the research on the evaluation of online lending institutions can not be conducted only from Lending institutions as an ordinary business,but also consider the attributes of credit intermediary.As a way for borrowers and lenders exchanging information directly,online borrowing has solved the problem of information asymmetry between lenders and borrowers.However,the network lending institutions mainly on the basis of long tail market,the long tail market borrowers have the weakness of credit information natural,so it is difficult for lenders to obtain effective information to distinguish.Therefore,lenders will choose network lending institutions with good operating conditions and high credit ratings when lending funds.In fact,borrowing institutions act as important guarantors in the lending process.In the environment of unsound credit system and unclear supervision,online lending institutions will inevitably bring about risk incidents through increased credit,so as the first step for online lending transactions participants to select institutional online lending institutions,the risk assessment of lending institutions has become the key to healthy development.The article analyzes the risk of lending institutions according to the process of online lending from the microscopic point of view,and establishes an index system to measure the qualifications,operation modes,stability and capital flow of lending institutions.The lending institution is identifiedthrough the method of BP neural network based on principal components.The recognition rate was87.7% and The article also proposed suggests that speed up the construction of Internet credit,and recommendation which is prudential.Starting from reality,the article summarizes the current development situation of online lending institutions,and applies the long tail theory to explain the internal causes of the rapid development of internet lending institutions,and points out the necessity of evaluating lending institutions.In addition,in the risk analysis,we first make the assumption that the borrower actually exists.At this time,in accordance with the process of network lending,we analyze the risk of credit enhancement before the loan review,the liquidity risk in the lending process,and elaborate on the reputation mechanism.The existence of positive feedback from online lending institutions and borrowing targets.In post-lending management,the risk of lending institutions’ risk prevention and control supervision was analyzed.Second,when the borrowers’ real existing assumptions are released,the related transactions and Ponzi scheme of the lending institutions are analyzed.Finally,by analyzing the risks of lending institutions,an index system for measuring the qualifications,operating methods,stability,and capital flow of network lending institutions was established.In the descriptive statistical analysis,it was found that there are huge differences between normal operating organizations and problem organizations,based on principal components.When the BP neural network method is used to identify the lending institution,the correct rate of recognition is 87.7%,which can effectively distinguish between problem institutions and normal institutions.Based on the current status of the development of online lending institutions,combined with the results of theoretical analysis and empirical analysis,we put forward feasible measures for improvement measures from internal and external aspects.In terms of internal aspects,it will raise the level of qualifications for lending institutions,establish information technology risk prevention and control mechanisms,and strengthen the dynamic review of borrower qualifications.In terms of external aspects,we will accelerate the construction of internet credit information and establish an operating model standard for the Internet lending industry.In terms of supervision,it established rules for the supervision of online lending industry to improve the transparency of information;established a prudent supervision system for online lending and established a sound protection system for lenders’ rights and interests.