Research On The Internet Financial Risk And Response

With the rapid development and wide application of modern information technology,it appears fusion trend between Internet and other industries which leads new direction.Internet Finance is a new financial model which is based on this background.The new financial model bring risks and cause problems of innovation away from track and obvious predatory expansion that cannot be ignored owing to incomplete relative regulators and measures to avoid risk.Internet Finance is devoted to realize the accommodation of funds,payment,investment and information intermediary service by modern information technology,and with new finance feature of open,equality,cooperation,share and inclusive.The main modes in Internet Finance are Internet payment,loan,fund sales,equity-based crowd-funding financing and insurance currently.Actually,the essence of Internet Finance focus on finance and with the risk of system risk,operation risk,credit risk,liquidity risk and market risk,these risks hold features of strong spread,high efficiency and virtualization and super complexity.Yu’ E Bao and P2 P Lending are quite popular Internet Finance modes and have a wide range of customers currently.The rate risk,liquidity risk and policy risk are main risks of Yu’ E Bao.The lost supervision of intermediate capital account,the difficulty to measure the business of borrower,the offtrack innovations of platforms and the inadequate rules of credit rating for borrowers make up main risks of P2 P Lending.For the Yu’ E Bao,P2 P Lending and other Internet finance’s risks and the causes of risks,we give suggestions to avoid Internet Finance risks in the followings.Create Internet Finance risk prevention system and strengthen the foundation of risk prevention.Improve the disclosure of information system and reduce the asymmetry of inner financial information.Establish and improve the credit system and reduce the asymmetry of external financial information.Guide healthy development of Internet Finance under the supervision of market and industry self-regulated.