| In recent years,online peer-to-peer lending as a typical Internet financial model gained leap-style development.The transaction scale is also increasing,covering all provinces in the country.Online loan of P2P has gradually become one of the major financing sources and investment channels for small and micro enterprises and individuals.However,due to the information asymmetry between the borrower and the lender,the market interest rate for P2P lending in China is generally higher compared with the bank's interest rate over the same period.Borrowers are at a disadvantage in pricing interest rates.How to improve the dominant power of the borrower in the process of interest rate decision is of great significance in reducing the borrower's financing cost,optimizing the resource allocation in the online lending market,and improving the operation of the online lending market.The interest rate in the P2P market not only represents the borrower's ability to pay,but also represents the lender's income of investment.The pricing mechanism of the interest rate of China online lending platform is similar to that of European countries.The lending rate is the result of the joint action of the lender and the borrower.This paper studies the pricing ability of the interest rate of both the lender and the borrower in the P2P online lending market in China.First of all,I studied the current situation of China's P2P online lending market,and pointed out that the scale and structure of the P2P online lending industry were becoming more and more reasonable.Although the interest rate of the online lending market is continuously declining,the market interest rate of China's P2P lending market is generally higher than that of the bank's loan interest rate over the same period.Then,I conducted an empirical analysis based on theoretical analysis.The factors that might influence the loan interest rate,such as the region,education,age,marriage,income,credit rating,borrowing period,and amount of loan were valuated by valuation method,and the interest rate reform factor was introduced as a control variable in the form of dummy variables.I used the bilateral stochastic frontier model to empirically measure the dominant power of the lender and the borrower in the P2P lending market in China,and quantitatively analyzed the effect of the dominant power of the lender and the borrower on the lending rate.Then,based on the empirical results,an econometric model was established to analyze the influencing factors of the dominant power of interest rate of online lending market.Finally,based on empirical conclusions,some ideas for improving the P2P online lending market in China were put forward.The main findings of this paper are as follows:Firstly,in China's P2P online lending market,there is a significant asymmetry in the dominant powers of both lenders and borrowers in the interest rate decision-making process.The lender has obvious dominant power and eventually has a positive effect on the loan interest rate of 5.51%.The two sides of the game eventually formed a relatively high interest rate relative to the equilibrium interest rate,and the lenders plundered more surpluses.Secondly,China's online lending market has obvious education,age,marriage,income discrimination.Borrowers with low academic background,young age,unmarried,low income,and low credit rating are in a very disadvantageous position in the interest rate decision-making process.With the increase in academic qualifications,age,income,and credit rating,the status of the borrower will improve,but it is still the lender's dominant power.Based on the above conclusions,the author proposes some ideas for improving the P2P online lending market in China.Borrowers should improve their own information and work hard to improve their credit ratings;The online loan platform should establish a complete credit certification index system and standard off-line credit certification methods;Regulators should enforce information disclosure and establish a sound third-party credit database. |
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