Research On The Optimization Of Government Supervision Of Online Lending Risk

With the development of economy,the financial industry has a great leap forward.With the continuous development of The Times,financial products have been popularized in the Internet market,resulting in a series of online lending products.Online lending not only promotes the innovation of financial services in China,but also fully meets the loan demand of small and micro enterprises and individuals in China.It,meanwhile,promoted the popularization of inclusive finance.However,the risks of online lending are great along with its low entry threshold,imperfect industry standards and weak government supervision.In recent years,many phenomena of illegal operation or sudden closure of online lending have occurred in China.In order to prevent risks of online lending and ensure the orderly development of the online lending industry,the government supervision has become a hot issue recently.Based on the research of domestic and overseas related literature,this paper aims to understand the development reasons,development process and characteristics of online lending.By elaborating the development and risks of online lending in China,this paper aims to understand the domestic and international differences of online lending and the reasons for differences in lending risks,and then to analyze the reasons for the emergence of lending risks.Combined with the development status of online lending and government policy,foreign countries prefer the risks related to asymmetric credit in the process of online lending,while domestic risks of online lending are diversified.There is no legal basis for online lending,even blank supervision.The lack of market access system leads to the low quality of the online lending industry.Credit information is incomplete,personal information disclosure is not timely;The current online lending has insufficient ability to control risks and produces other problems.Taking Bank of China Consumer Finance as an example,this paper analyzes the general situation of Bank of China Consumer Finance,the risks of its online lending,and analyzes the problems of government regulation based on the risks of online lending.As one of the first batch of consumer finance companies in China and the first consumer finance company in Shanghai approved by China Banking Regulatory Commission,Bank of China consumer Finance has certain representational risks in its online lending.Bank of China consumer Finance’s online lending business is famous in the industry.Considering the existing problems in government supervision of online lending risks in Bank of China consumer finance,in order to facilitate the future compliance development of the online lending industry,combined with the existing experience and Chinese government supervision of online lending,this paper aims to proposes relevant suggestions for optimizing the government supervision.The suggestions include speeding up the improvement of laws and regulations on online lending,improving the establishment of supervising subject and regulatory boundaries,improving the information disclosure system and improving the government-led credit investigation.According to the analysis and research in Bank of China consumer finance lending risk,explore the government regulation.Combined with domestic and foreign government management experience to put forward relevant countermeasures and Suggestions in government regulation.With the further strengthening of government supervision,online lending industry will emerge a new situation in the future.It can be predicted that high-quality online lending can achieve sustained,healthy and stable development in the future,under the benign supervision of government.