The Rick Warning Research On P2P Lending

Along with the development of network,the internet has become an indispensable part in people's life.As an essential part of social life,finance also develops a new mode-The internet finance.As the most important form of The internet finance,P2P lending has experienced a rapid growth since 2013.It's encouraged to develop by the policy,because it accelerates the efficiency of capital matching,then alleviates the problem that small company and individuals are hard to get loans from banks.However,in the early period of the industry,a series of severe problems burst out because of the low entry barrier and lack of regulatory.Events such as breaking of borrower's fund chain and the platform making off with money occur one after another,causing a lot of bad effects to the society.As a new form of finance,P2P lending is facing great challenges in risk prevention problem.In order to reduce the impact caused by the risk of the platform,it is necessary to carry out early risk prevention measures to get a healthy and stable development of the industry.First,this paper analyses theories of internet finance,P2P lending and early warning of finance risk.Then this paper summarizes the main risks that affect P2P lending platform,according to the field investigation on several platforms and their senior executives.Combined with the index selection principle,author establishes an index system of early warning.Next author collects data from 39 sample platforms,then the paper carries out an empirical analysis using the Principal Component Analysis.Then this paper measures the risks of each platform.At last,according to the empirical results,the paper gives out suggestions from three perspectives,contributing to the sustainable development of P2P lending.