The Influence Of Regulatory Policy On The Interest Rate Of P2P Lending Market

Internet finance has promoted the development of small and micro enterprises,and has played an active role that can not be replaced by existing financial institutions.The booming P2 P network lending has provided small and micro enterprises with major financing channels.However,with the rapid development of the P2 P network lending,due to the lack of supervision,many platforms are walking on the edge of the legal red line,and the number of problem platforms has proliferated,accumulating a lot of risks.In response to the lack of supervision of the network lending industry,the government and regulatory authorities have issued various laws and regulations.By 2017,the establishment of the "1+3" institutional framework,meant that the network lending industry had initially formed a relatively complete system of policy.The development of Internet finance has ushered in a new phase.Therefore,studying the fluctuations and changes in interest rates of network lending platforms under policy changes can better detect the flow of funds and changes in investor sentiment in the market,and also helps regulators and investors to better detect network loan platform risks through interest rates.Firstly,the paper systematically investigates the development status and the supervision and policies of P2 P network lending industry,and then analyzes the impact of the two major regulatory policies on the interest rate of the network lending market from the macro and micro levels.At the macro level,the paper collected the daily comprehensive interest rate data of the network lending market from August 24,2015 to February 23,2018.The GARCH model was used to analyze the impact of the introduction of regulatory events on the interest rate of the network lending market.The empirical results show that the introduction of regulatory policies can effectively reduce the volatility of interest rates in the P2 P network lending market and reduce the risk of the network lending market,and improve the effectiveness of the network lending market.At the micro level,this paper uses 105 platforms of the P2 P industry’s influential portal website "wangdaizhijia" as the research samples.The sample time range is from February 24,2016 to June 30,2017.Panel data models are used to analyze the changes in interest rates of network lending platforms in regulatory policies.In addition,the paper groups platforms according to their backgrounds and studies the differences in the impact of regulatory implementation on the interest rates of platforms with different backgrounds.The results show that(1)The introduction of regulatory policies can effectively reduce the interest rate level of P2 P network lending platforms and reduce social financing costs.(2)Network lending platforms in the eastern region have benefited more from regulatory policies.(3)Compared with the network lending platform with a private background,the implementation of the regulatory policy has played a better effect on other background platforms,namely,bank background,listed companies,state-owned assets and venture capital background platforms.Therefore,the article supplements the existing theories through empirical research,and at the same time puts forward specific policy recommendations for the government,regulatory authorities,network lending platforms,and investors.