The Research Of Risks Of The P2P Lending In China

In recent years,the P2P Internet Lending has become an important form of internet finance and it has developed extremely rapidly in China.On the one hand,the industry's convenient,fast,and low-threshold features have attracted a large number of investors;on the other hand,there are huge potential industrial risks.Investors are the ultimate bearers of risks and are also exposed to the risk first.This article introduces the concept of P2P Internet Lending,its background,its role in the financial market,the current situation of the industry development and supervision status.After analyzing the typical operating model of the P2P Internet Lending platform,including the business development model,turnover of capital method,risk control in management process of pre-loan,loan and post-lending,this article analyzes the risks faced by investors from the perspective of protecting the interests of investors.From the legal perspective,the platform has to solve the problems of innovation and legality of business transaction in the first place.Before the publication of the Provisional Measures for Administration of Business Activities of Internet Lending Information Intermediaries(the Measures),P2P Internet Lending has been walking in the grey area of the law.After the publication of the Measures,the identity of the platform was officially recognized by the authority.Secondly,due to the lack of industry standards before the publication of regulations,the existing platforms in the online loan market are mixed with good quality and bad quality,which also brings risks to investors' capital and investment safety.Thirdly,risks from borrowers include the following situations:borrowers are not eligible for the loan,for instance,there are social risks and bad debt risks caused by the phenomenon of college students' online lending,the borrowers' credit risk of malicious default,credit risk of fraudulently obtaining loans,and the risk resulted from the lack of control over the use of loans that makes it impossible for investors to chase payments.Fourthly,a succession of the "run away" events shows that,as a pool of funds,platforms often have moral hazard.Fifthly,risks exposed in the guarantee model of some platforms include the following categories:self-financing and self-guarantee which exist in the form of risk reserve fund and are suspected of direct violation of regulations,problems such as the vagueness of the terms of the guarantee,the specific interpretation rules cannot play the role of guaranty,the solvency of risk reserve is insufficient,self-guarantee of the borrowers are often difficult to liquidate due to decentralized claims,remote guarantee or other reasons,the qualifications and independence of third-party guarantees,and whether there are over-guarantee,etc.Sixthly,in the mode of the assignment of debt,investors may face a problem that the agreement of transfer is invalid and it is impossible to confirm the debtor in litigation.Finally,due to the needs of business development,platforms collect a large amount of investor information.The degree of security of the network environment and the degree of moral self-discipline of platforms determine whether these personal information and privacy security can be effectively guaranteed.As a result,investors should also maintain vigilance at points of personal information security and privacy protection.In the face of the above risks,strengthening the protection of the interests of investors can be initiated from the following areas:establishing a strict market access threshold so that parts of the platforms that do not have basic business quality are blocked outside the market;classifying investors and limiting the amount of investment;mature investors and immature investors investing respectively in products with different risk levels and upper limits,strengthening the education of the investors,making them learn about industry knowledge,know how to identify risks,and invest prudently;giving play to the role of industry self-regulatory organizations,forming the industry authority,and making the cooperation of self-discipline management and institutional supervision come true;trying to introduce insurance system to rationally absorb risks;improving the construction of the credit system,enhancing the honor notion of the public,and increasing the punishment for dishonest behavior.