Research On China's P2P Network Lending Risk Management And Control

With the wide application of Internet technology and the arrival of the era of big data,P2P online lending has provided new financing channels and new financing methods,as well as new service modes and concepts for Chinese small,medium and micro enterprises,individuals and other social entities.As the beginning of Internet finance,2013 is also the year of rapid development of China's P2P online lending industry.However,China's relevant legislation system,credit information system is not yet perfect,and the platform itself has not yet established a good risk control system,resulting in an increase in the number of problematic platforms in China,which greatly affects the orderly development of the industry compliance,but also brings irreparable losses to lenders.In 2018,the P2P online lending industry ushered in a year of regulatory requirements and issued various rules related to the operation of online lending platforms.Regulators will strictly rectify the situation of the domestic online lending industry,and the high liquidity risk is also troubling the major platforms.In this context,by studying the status quo of risk management and supervision of online lending platforms in China,this paper further analyzes the key points of risk management and control of online lending platforms,discusses possible loopholes,and puts forward practical and effective Suggestions for the long-term development of P2P platforms.This paper selects the first Internet financial platform in China that recommends the underwriting standards of Zhong-An Insurance and takes Xiao Ying Net Gold as the case study object.Combined with theoretical research,this paper explores risk management and control measures worthy of reference for P2P online lending platforms.This paper starts with the causes of liquidity risk caused by P2P network lending and briefly introduces the liquidity risk measurement model.Based on the actual situation of P2P network loans,the Logistic regression model was selected to measure and predict the credit risk of P2P network loans.The liquidity risk occurrence probability of online loan platform is mainly affected by the platform's own situation and the status of borrowers and investors.In this paper,the platform turnover rate,yield rate,per capital investment,per capital borrowing,borrowers to be repaid and investors to be received are selected.Ten indicators,including capital flow,average borrowing period,loan balance and platform level,were used to reduce the number of explanatory variables to three main components through principal component analysis.Then,through empirical analysis of Logistic model,the specific expression is obtained.The results of the model show that:?1?The proportion to be repaid and investment is negatively correlated with the probability of liquidity risk of the platform,while the proportion to be borrowed is positively correlated with the probability of liquidity risk of the platform.?2?Five independent variables,including X₁?transaction amount?,X₃?per capital investment?,X₅?borrower to be repaid?,X₇?loan balance?and X₈?capital flow?,are positively correlated with the platform's credit,and the probability of the platform's liquidity risk is negatively correlated.?3?Five independent variables,including X₂?yield?,X₄?per capital loan?,X₆?investors to be collected?,X₉?average loan term?and X₁₀?platform level?,are negatively correlated with the platform credit and positively correlated with the default probability of the platform.In addition,the in-sample data set and the out-of-sample data set also respectively verified the higher prediction accuracy of the model,indicating that the Logistic regression model is used for P2P online lending platform.The measurement of liquidity risk is feasible and reliable.Xiao-Ying Net Gold provides excellent insurance services,loan services,disguised credit enhancement services,illegal use of customer funds and excessive capital cost ratio.In addition to the recent increase in non-performing loans,the platform is facing considerable liquidity risks.Therefore,this paper makes case enlightenment from the perspective of regulators,online loan platforms,investors and borrowers,and puts forward Suggestions for the further development of P2P online loan industry from the perspective of market positioning and the construction of risk management and control system.