Study On P2P Asset Escrow Problems

Foreign peer to peer lending mode has been growing fast since it developed in China from 2007. By the end of 2014, the amount of P2 P platform has developed to 1575, and its cumulative turnover is more than 382.9 billion Yuan. Also, it has played a positive role in compensating for the lack of traditional financial service and made a lead of the standard private finance. However, with the increasing number of the P2 P platforms, the quality is not as good as it used to be. Many companies are not responsible for their creditor, and illegal fund-raising, cash difficulties always happen in this situation. By the end of March in 2015, the amount of unhealthy platforms has been more than 550. The problem of the P2 P financial security issues need to be solved soon, since it is taken more seriously as an important means to ensure the safety of the investor funds. At present, the subject of P2 P funds escrow in China is the third party payment institutions and the traditional commercial banks. The P2 P funds escrow has just grow in only two years, which is just starting to be developed, so many problems will be insight, such as illegal and regulatory risks, process design of escrow and so on.Based on the status of P2 P fund escrow and the escrow model of the commercial banks and third party payments, we find that the third-party payment escrow P2 P funds has many problems, for example, the escrow eligibility is not clear, the managed process is imperfect, and there exists many risk in its own operations. Commercial banks are facing many problems as well. The P2 P fund is too small for the banks to manage, and also, some platforms are hard to satisfy the standard because of the great reputational risk and the lack of flexibility in interbank clearing. Therefore, this paper comes up with four suggestions. Firstly, the regulator authority in financial field should speed up the introduction of P2 P fund escrow rules, and recognize the third-party payment escrow qualification. At the meantime, the responsibilities and obligations of third-party payments should be clear by establishing access conditions of P2 P fund escrow. Secondly, the third-party payment can set a special bank account for both lenders and borrowers to optimize the escrow process. Thirdly, the third party payments and commercial banks should Pay more attention to the warning of risks to the investors, in this way the reputation risk of the commercial banks will be reduced. At the end, through strengthening of industry self-regulation, optimizing the model of risk management, and relying on P2 P platform, the risks can be controlled to a certain extent.