Research On The Default Risk Control Of P2P Online Lending

P2P network lending is an innovative financial lending whose service mode is based on Internet information technology,main service objects are small and medium-sized enterprises and individuals,main purpose is to provide relatively convenient sources of funds.In the past 10 years,Chinese P2 P network lending platform has developed vigorously,showing an exponential growth trend.However,there are also frequent news of "Thunderbolt" of P2 P network lending platform that makes a large number of small and medium-sized investors suffer heavy losses.On the one hand,P2 P network lending platform provides convenient financing services for both parties.On the other hand,the lending platform would also face a huge challenge to the risk control mechanism and financial supervision concept of the financial industry.Strengthening the control of credit default risk plays not only a great significance to the platform but also the whole Internet financial industry.The first part of this paper introduces the research background,the research significance,the literature review,the research methods and the innovations of P2 P network lending industry.The second part introduces the theory of P2 P network loan default risk,including the definition of P2 P network loan related concepts,the introduction of participants' characteristics and the explanation of default risk related theories.The third part is the current situation of P2 P lending,including the development of P2 P lending industry,the development of platform and the status of government supervision.The fourth part contains the analysis of default risk,the process of data,the selection of variable,the introduction of logistic model,the analysis of regression results and model prediction.With combining the characteristics of sample data and empirical results,we would find out the main factors and influence degree of default risk in order to achieve effective default Risk control.The fifth part describes the policy recommendations that mainly come from the perspective of investors,the lending platforms and the government which respectively put forward to preventing strategies.