The Interest Rate Marketization Influence On Online P2P Lending Development

The long-term control on interest rates led China’s financial markets to a serious financial repression, many borrowers, especially the micro,small enterprises and individuals, feel more difficult to borrow money from the formal financial institutions; at the same time, due to low investment channels, a lot of people have to store their money in the bank,cannot value-add their assets. The online P2P lending platform alleviate the financing difficulties of small micro enterprises and individuals.In China, online P2P lending arose in the process of the gradual marketization of interest rate reform, there are two important reasons that they development rapidly in less than 10 years: one reason is that they are not controlled by the deposit interest rate upper limit, can provide much higher rates than the yield of bank deposit rates to attract investors, the other reason is that small and medium-sized enterprise financing difficulties because of the severe financial repression caused by interest rates control, the online P2P lending platforms will be able to attract a large number of borrowers if they can provide lower lending rates than other informal financial. In theory, Interest rate marketization can affect the market mechanism of the market allocation, alleviate financial repression, reduce the financing difficulty of small and medium-sized enterprises, and can make financial institutions according to their own development decide deposit interest rates, not be restricted by the policy.These all will have a significant impact on the development of online P2P lending industry. So what impact Interest rate marketization will fall to the online P2P lending? The specific influence to which aspects of the online P2P lending? What specific form will be?To solve above problems, the paper will research from the following several aspects, the main work is as follows:First, build an online P2P lending interest rate pricing model, and compared with the real interest rate pricing level on typical P2P lending platform, say the relationship between P2P lending’s real interest rate and interest rate under the condition of the marketization.Second, analyzing the influence on P2P lending rates by the change of credit spreads and the capital supply and demand, use the regression analysis model for validation, to research how the interest rate fluctuations to influence the development of P2P lending.Third, compare the lending and borrowing business between P2P lending and commercial bank, then forecast the development direction after the complete of the marketization of interest rate reform of both.The last, combination with other factors on the impact of P2P lending, make modification and supplement to the foregoing conclusion,analysis the interest rate marketization influence on the development of P2P lending in the perspective of more comprehensive and objective .