Research On The P2P Lending Risk And Regulation In China

With the rise of the internet and the development of private lending, P2P lending network came into being, by virtue of its simplicity and convenience have to solve the shortage of funds in favor of some people, it provides a transparent and direct micro-credit trading for individuals and fill the gaps in the traditional financial system to some extent.In more detail, the paper analyzes the characteristics and development of basic domestic and foreign borrowing on P2P networks, it studies the operation and the mechanism of P2P networks,borrowing abroad. This paper take the "PPdai.com" lending platform network for example, grasping take platforms loan transaction data, construct borrower characteristics indicator system to study the borrower’s credit characteristics and the effect of the interaction network platform financing. However, we should also know that due to lack of supervision, poor legislation and other issues, China’s internet lending market exist large potential risks. Therefore, the paper also discusses the risk of overall lending P2P networks, proposes four monitoring countermeasures to strengthen the credit risk of P2P network:i.e to clear legal status P2P networks and regulatory body,to regulate the daily operations of the P2P network lending platform, to intruduce third-party mechanisms, to establish and improve the information disclosure mechanism.