Research On Financial Risk Assessment Of China's P2P Platform

P2P lending has experienced explosive growth in China in just a few years,and has experienced the thunderstorm.After several years of development,the P2 P lending industry is gradually becoming standardized,but problems such as platform running,bankruptcy,rollover,and bankruptcy still appear,which not only bring losses to investors,but also may cause industry crisis,neither conducive to the healthy development of the P2 P lending industry,nor conducive to social stability.How to prevent and reduce the risks of P2 P lending has become an important issue,financial risk is the most important risk.Since P2 P lending started in China,the research results in related fields are still relatively blank.Based on this,this paper conducts a financial risk assessment study of China's P2 P platform,and explores the influencing factors and measurement models of financial risks,which can not only supplement existing research,but also provide guidance and suggestions for investors and borrowers.It is both theoretical and practical to understand its own risks and timely rectification.This paper mainly uses the literature reading method and empirical analysis method.First,consult the domestic and foreign journal literature,understand the concept of P2 P lending and financial risk and related theories,and lay a knowledge base for research.Then,review the development history of P2 P lending in China,and uses PEST analysis method to briefly summarize the macro development environment of P2 P lending industry in China.Based on the data of P2P-Eyes and P2P-Offical,describe the status and trends of its development.The financial risks of the P2 P lending platform mainly cover capital risk,liquidity risk,asset quality risk and profitability risk.Based on these four dimensions,this paper draws on 17 indicators variables from previous studies,and collects data on426 platforms through the websites of CSMAR Database,P2P-Eyes and P2P-Offical,uses EXCEL and SPSS to analyze the data.The factor analysis method is used to calculate the financial risk scores of each platform,and they are divided into twocategories: security platform and platform with financial risk.The dependent variables are assigned "0" and "1" respectively.Then,using the binary logistic regression analysis method,a financial risk assessment model of P2 P lending platform is constructed.The top five factors affecting the financial risk of P2 P platform are platform background,whether there is fund deposit,whether there is risk reserve,guarantee or mortgage,average interest rate and capital adequacy ratio.After testing,the prediction accuracy of the model is as high as 95.1%,and the model fitting effect is better.Finally,three suggestions are put forward: the government and the regulatory authorities improve the industry's entry barriers and improve the exit mechanism;the platform itself often establishes risk awareness and often introspects;investors and borrowers pay more attention to platform information and carefully screen before decision-making.At the same time,it proposes three prospects for the future development of China's P2P: establishing a sound information disclosure system;establishing a social credit system;and establishing a financial risk assessment and early warning model in line with national conditions.I believe that China's P2 P industry will get better and better under strong supervision and rectification.