Research On Default Factors Of Borrowing Borrowers In China's P2P Network

P2P network lending is a behavior that enables direct lending transactions between individuals and individuals through a third-party network.Its production has subverted the form of traditional private lending,provided financial support for many small borrowers,and provided investors with a higher interest rate investment method,which gradually became an important channel for private financing.China's P2P network lending industry's total turnover,number of platforms,employees and users has experienced explosive growth.However,due to the lack of sound risk prevention mechanism and credit risk assessment system,the entire industry contains large default risks.The issue of default by borrowers has gradually become the focus of attention.It is especially important to study which factors can affect the default risk of borrowers,and to prevent the default risk of borrowers and promote the sustainable and healthy development of the entire onl:ine loan industry.In the research of this paper,firstly the paper analyzes the development of P2P online loan industry at home and abroad and the status quo of domestic P2P:industry default,and analyzes the influencing factors of borrower default from three aspects:borrower's personal characteristics,product demand and credit status.This is the basis for selecting the hypothesis of this paper.Then use the Renren loan data to conduct a logistic regression model.The model selects the borrower's marital status,education,income level,working years,the amount of the loan product,the term,and the credit rating of the borrower as explanatory variables,in which the borrower's gender,work place,real estate situation and interest rate of the borrowed product are used as control variables.The regression analysis of the full sample and borrowers in the eastern,central and western regions samples were conducted.The main conclusions are:the borrower's education is negatively correlated with the default risk,the borrower's monthly income is positively related to the default risk,the loan product term is positively related to the default risk,and the borrower's credit rating is negatively correlated with the default risk.Finally,based on the empirical results of this paper,the following countermeasures are proposed:strengthen the borrower's academic level review,strengthen the borrower's income review,reasonably control the term of the borrowed product,and improve the platform credit rating system to more effectively control the borrower's default risk.