Analysis And Prevention Mechanism To The Risks Of P2P Network Lending Platforms

Internet has been developed rapidly since 21 century. Meanwhile, "Big Data"、 "Cloud Computing" technique and so forth also have been developed gradually. With the mass consumption concept being changed and modern financial theory being reformed, "Internet Finance" which is based on finance industry and internet technology emerges as the times require. Patterns of internet finance are more flexible and pluralistic than that of traditional finance. P2P network lending platform is the fastest growing pattern of internet finance.P2P net loan is introduced into China in about 2006. Over the past 10 years, it has shown a trend of explosive growth owing to the "three no" situation:No Threshold、No Standard、No Supervision. A large number of P2P network lending platforms come forth in the Chinese market.The risks of P2P network lending platform are mainly reflected in the following four aspects. First, lack of specific and relevant laws makes it very difficult to define its business boundary. Second, there are some hidden security troubles on the capital of P2P network lending platform. Third, risk control of this platform is not perfect. Last but not the least, China is lack of a sound credit system which plays an important role in P2P network lending platform.This article introduces 4 real cases of P2P lending platform to analyze the above risks based on the relevant theories of internet finance. I want to make a thorough inquiry into the potential risks that P2P lending platform are facing by analyzing those cases.In order to guard against those risks, our government, on the one hand, has to help promote the introduction of laws on P2P lending, accelerate the construction of regulatory system and specify the regulatory agency; On the other hand, it should be devoted to our country’s credit system. For P2P lending platforms, they,on the one hand, have to promote their network technology and reduce network risk; On the other hand, they develop internal control system and enhance operating procedures. For borrowers and lenders, they have to increase mutual understanding and trust.Then, I put forward the prevention mechanism to these risks after studying the relevant literature at home and abroad. I hope the prevention mechanism can do a favor to the P2P network lending platforms in China and help them develop in a healthy and sustainable situation...