Research On Credit Risk Of P2P Network Lending Platform

The rapid growth of emerging technologies such as the Internet,cloud computing,and big data has prompted the birth of Internet finance model,and Peer-to-Peer lending is the most typical model of Internet finance,which not only provides investment and financing channels for borrowers and lenders,but also improves the efficiency of resource allocation by leveraging the advantages of the Internet and big data.The establishment of PPDAI in 2007 marked the beginning of China’s P2 P network lending market.Since then,various platforms emerge one after another,and the transaction volume is increasing.By the end of 2015,the number of platforms operating normally reached 3437,and the volume of P2 P lending sector reached 982.3 billion yuan.However,behind the rapid growth of the industry,problems such as termination of business,transformation of platform,delay in redemption,and difficulty in cash withdrawal occur frequently.By the end of 2018,the number of cumulative problem platforms reached 4937,and the problem rate is as high as 75%.Therefore,studying the credit risk of China’s P2 P network lending platforms,exploring the influencing factors of the platform’s credit risk,and specifically analysing two case platforms are in line with the current development of China’s P2 P network lending sector.Firstly,this paper reviews and summarizes the existing literature on P2 P network lending.Secondly,it sorts out the theory of credit risk formation of P2 P network lending platform and puts forward the theoretical hypothesis.Thirdly,based on the monthly panel data of 45 sample platforms from August 2017 to December 2018,Stata 15 is used to construct and analyze the regression model and indicators of P2 P platforms,investors,regulators,industry development and macro-economy are synthesized to empirically test the influencing factors of credit risk of P2 P platform.It is concluded that operation time,transaction amount,attention of investors,supervision intensity,industry development and macroeconomic development have significant impact on platform credit risk.Subsequently,taking low credit risk platform representative PPDAI and high credit risk platform representative Hexindai as examples,the two case platforms are firstly introduced in terms of operating background,business models,product types and risk protection,and then the specific performance of the two case platforms in the five-dimensional empirical quantitative indicators is analyzed.Case analysis shows that low credit risk platform has better basic qualifications,higher business operation security,better platform operation,higher degree of attention by investors,and external regulatory policies and macroeconomic development have a greate impact on case platforms.Finally,the conclusions of empirical research and case analysis are summarized,and the corresponding decisionmaking suggestions are put forward for P2 P platforms from the aspects of operation management and system establishment,investors from the aspects of platform selection and risk education,regulators from the aspects of regulatory policies and credit reporting mechanism.