Research On Managing The Risk Of P2P Lending By Using Credit Guarantee Insurance

Since P2 P lending model introduced into China in 2007,the domestic P2 P lending industry has gradually developed on the right track and become an innovative internet financial product which is gradually recognized by the market.The borrowers post their loan demands through the platform which can greatly alleviate the financing problems of small and medium-sized entrepreneur and individual,and can also help to solve the problem of incomplete information of fund shortage and fund surplus.In addition,investors obtain interest income by lending money.This way enriches the investment choice of Chinese residents and speeds up the flow of private capital.But,reviewing the development of P2 P,it exposed many problems,one of the biggest risk is the credit risk of the borrowers.This paper studies on introducing insurance mechanism to manage risk,namely the use of credit guarantee insurance guarantees for its risk.The whole paper's narrative structure recounted as follows.First of all,in terms of from the standpoint of the selected topic background,put forward the idea that solving the credit risk problem on the P2 P platform by using the credit guarantee insurance.Respectively introduce the literature review about online P2 P lending and credit guarantee insurance in domestic and overseas.Secondly,expound the concepts of P2 P and credit guarantee insurance and relative theory between them.The theory including: the risk management theory,information asymmetry theory,credit risk theory and the theory of the relation between insurance and credit lending.These theories are the basis for the research content.Thirdly,analyze the current situation of online P2 P lending platform in China,and expound all kinds of the risks that platform faced in their development.Therefore,point out that the credit risk is the core risk in online P2 P lending business,and introduce the traditional P2 P risk control method,credit ratings and risk reserve system.Fourthly,the core part of this paper elaborates several kinds of problems of using credit guarantee insurance to manage P2 P platform risks,including: current development status,application mechanism,operation mode and case analysis,etc.Finally,several obstacles in the cooperation between P2 P lending platform and credit guarantee insurance are listed,and corresponding solutions and policy suggestions are put forward.