Research On Risk And Legal Regulation Of P2P Network Lending In China

Peer to peer lending is the emerging private lending which combines traditional private lending with Internet technology. The financing amount of P2 P lending may reach tens of millions even tens of billions through platform, which exerts great influence on our cash flow. To some extent, it alleviates the financing difficulties of small and micro business and individuals. However, due to the lack of specialized P2 P lending law regulation, the phenomenon of violation and breaking of contact appear continuously with the development of Internet credit platform, intensifying the development risks of P2 P lending platform. On August 23, 2011, China Banking Regulatory Council issued "on all mortgage-related risks prompt notice", exposing the risk of P2 P lending to the public. The main content of P2 P lending is the lending risk and regulatory gaps.First of all, this article considers the P2 P lending platform as a financial information intermediary through the explanation of its meaning and property. The characteristics of P2 P network borrowing include the high speed of lending and the low threshold of lending. Second, because of the concealment of the network, the borrowers and lenders always have to bear the risks of the leakage of personal information, the breach of contract, contract fraud, “money laundering” and adverse selections. The P2 P lending network faces the risks of liquidity, credit and technology due to the lack of regulation, the low requirements for market access and the ambiguous legal orientation. This article gives a detailed description of these risks. What's more, the P2 P lending arises abroad and the foreign legal regulation has important enlightenment to our country. The USA regulatory system mainly relys on the SEC and the state department while the England regulation mainly depends on the government regulation and industry self-discipline. There is no specializaed P2 P lending law regulation in German and the main way is to collaborate with banks. The Australian regulatory system mainly resorts to its own operation mode regulation. Drawing on the combination of foreign regulatory mode and our national conditions, our country aims to improve the body of regulation, which takes the government regulation as the main part and the industry self-discipline is complementary. Meanwhile, our government also aims to improve the construction of personal credit system. Finally, this article puts forward some corresponding regulatory opinions in terms of the risks, including the legal control of "money laundering", the perfection of the information disclosure system which aims to control lenders "adverse selection" risks and the introduction of guarantee to protect the lenders. The article also gives suggestions on how to protect the personal information of the borrowers and the regulatory tracking on the post-loan funds. The biggest risk of network borrowing is the risk caused by the P2 P lending platform. Therefore, this article puts forward lots of suggestions to perfect the credit reporting system, control the risks of bad debts through the management of bank funds, establish credit professional team, strengthen the technology risk control and establish the regulatory policy of industry self-discipline led by government.