| Online Peer-to-Peer (P2P) lending first appeared in the UK in March 2005. China's first P2P lending platform Paipaidai established in August 2007. P2P lending had achieved rapid development since it was introduced into China, but as a new thing, there were many problems with the development. The credit risk is extremely harmful to the stakeholders in the P2P lending. Once bad debts borrowers defaults, it will directly endanger the interests of lenders, and the negative evaluation from lenders could damage the reputation of P2P lending platform. It will lead to a crisis of confidence on the P2P lending platform. In this vicious cycle, P2P lending platform will be closed due to poor operation or run on platform. Gradually increase in the number of problematic P2P platform will hinder development of the industry.P2P lending platform is an intermediary platform between borrowers and lenders, which provide the borrower's personal details to the lender, in order to achieve the full exchange of information between the two sides. Actually, because of limitations in the domestic credit environment, the problem of information asymmetry still exists in P2P lending. Since there were borrowers with incomplete information, according to the theory of information asymmetry, the problem of credit risk is very serious. Therefore, mitigation of P2P lending borrowers with incomplete information situation has become an important way to control the P2P lending credit risk.On the basis of analyzing the borrowers' data of Renrendai, the result shows that the interest rate, repayment period and pay off items become predictors of a borrower default risk, many other factors on the borrowers not have direct impact on the default rate. Only few information released by platform provide useful information for lenders. For example, the borrower's personal information, such as age, marital status, borrower's job-related information is useless for lenders. The borrowers' information, and other information indicator meaning the borrower's credit rating and the weight percentage of representatives are different. Credit rating of borrower directly reflects the credit status of the borrower, which should be directly formed on lender risk warning, so that lenders choose their own investment preferences based on the borrower's credit rating. Thus, the presumed future default rates of the borrowers should also be directly based on their credit rating. Result shows that the credit rating of the borrower does not affect its forecast default risk, in turn, can not come to the borrower credit ratings of its future credit risk constitutes a reference, this result also shows that as the essence information of the borrower, the credit rating has lost its proper meaning.The prevention and controling the borrower's credit risk of P2P lending will fail if only rely on the government or P2P lending platform. It is necessary to participate in multi-party effort and body. P2P lending platform should control of credit risk audit and loan management and take advantage of the borrower's credit information acquired to make a reasonable credit risk judgment and loan management plan. Both sides of borrower and lender should be fully self-discipline. The borrowers do not rely on excessive borrowing false increase trust, and the lenders should foster a strong sense of risk to minimize the investment loss. The government should conduct proper administrative intervention. It helps to develop a regulatory variety rules suitable for P2P lending industry. It promotes the development of P2P lending credit industry and also ensures that the parties are acting according to law. But also on the P2P lending this new thing to give policy support to promote the P2P lending industry deep level in the country.Because P2P lending platform cannot share the central bank's credit data, so risk pricing, requires field research or other methods to get the borrowe's information. The empirical research on P2P lending platform is to explore the borrower's credit check whether reduce the degree of information asymmetry and reduce credit risk. On the basis of analyzing the borrowers' data of Renrendai, we explored whether the information paltform collected reduce the degree of information asymmetry. Through theoretical and empirical research, we found Renrendai platform in dealing credit risk of the problems, on the one hand to enrich the P2P lending borrower credit risk theory, on the other hand played a convincing empirical study of reality, providing an effective reference relevant regulatory rules for China.Specific to the study of innovation and contribution to the content are as follows:Firstly, the information asymmetry in P2P lending is not only because of the restriction from information, but also because of the allocation which credit rating loans on the factors not related to the default risk. It leading to borrower information element is amplified use.Secondly, when P2P lending platform put credit rating as a risk factor of amplification, it will increase information asymmetry between borrower and lender. Further, it induces the occurrence of credit risk. |
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