Research On Risk Management About P2P Network Lending Platform

On March 5, 2015, during the third session of the 12 th National People’s Congress, an initiative was put forward an initiative named "Internet +", which soon became a focus among the media and the public. On March 22 of the same year, CCTV news broadcast a piece of news titled "the new normal and new achievements:‘Internet + financial’ brings financing efficiency”. The news said the Internet has constantly changed the setup of the financial industry,and Internet technology advantage has continuously broken all kinds of information barriers in the financial field. It emphasized P2 P network lending platform is growing vigorously and is popular among private lenders and investors, thus becoming a social focus and an important way in the private lending market.It is understood that in 2014 there were over 1228 newly online platforms for P2 P lending,with a total loan balance surpassing 100 billion. In 2014, P2 P users has launched more than 4.5 billion business transactions by mobile phone mobile payment only, with a total amount of 22.59 trillion yuan. However, any new financial products will inevitably face risks. Such risks in P2 P lending industry include money laundering, Ponzi scheme, illegal fund-raising, and frequent "run-away" events, bringing it down into a serious credibility crisis. Therefore, in light of the current situation, it is imminent to do a good job of risk management if a company featuring internet lending platform is to stand out.Staring from the background of P2 P lending and the problems in current social reality, the article studies the necessity of the topic. The paper puts forward his own understanding on the basis of the summary of domestic and foreign research results. By using the asymmetric information theory and risk management theory, the paper takes Jinling-e credit company, a comparatively mature P2 P lending platform company as an example, which was promoted by Jiangsu TV station. The paper introduces the operation mode of the company, elaborates its causes through two aspects including adverse selection and moral hazard and studies its risk management. Finally it presents some countermeasures and suggestions to risk management of P2 P internet lending platform.Currently, the study of P2 P network lending is relatively less, and the study of risk management on P2 P platform is much rarer. In this paper, there are new highlights in the process of research on P2 P lending patterns. Based on the previous research results and asymmetric information theory, the paper puts forward a creative risk management from the perspective of adverse selection and moral hazard as well as the strategy level. This paper fills the gaps in the research of P2 P lending to a large extent by the analysis of the typical cases:Jinling e credit, whose angle is both challenging and unique.