Peer-to-peer lending

  Peer-to-peer lending is P2P net loan, the funds and financial investment idea of personal, through the third party platform matchmaking, use credit loan way will fund loans to other borrowing needs of people.

  Among them, the intermediary agencies are responsible for detailed investigation of the borrower's economic benefit, management level, development prospects, and charge account management fees and service fees and other income. On the basis of this mode of operation is "Contract Law", is a kind of folk loan, as long asLoan interest ratesNot more than 4 times the bank lending rates over the same period, is legitimate.

   The P2P platform English name "Peer-to-Peer lending", point to point, on a personal credit platform, P2P platform first appeared in foreign countries, USA maximum network lending platform is Prosper (translated as "prosperity"), and Europe's largest network lending platform is Zopa, the two big platform through its website to achieve the user between borrowing or lending, before personal loan is achieved by banks, individuals will deposit pool to the bank, the bank as a medium of payment to the lender.

  The rise of P2P platform makes the commercial bank funds around the media system, implementation of the "financial disintermediation (FinancialDisintermediatiOn) ", the lender can put money loaned to other people on the platform, and the platform through the development of trading rules to protect the interests of both transactions, but also provide a series of service work, to help both lenders and borrowers better to complete the transaction. Before the birth of P2P platform, if you want to apply for a loan, the first thought is the bank, need to set an example by personally taking part for the banks to set up branches submit application, provide complex material, after a long wait, to get money. P2P network lending is different, the individual through the landing site to become a registered user, fill in the relevant information, through the relevant verification, can publish personal loan information. P2P relative to traditional bank loan business, is one of the characteristics of convenient. In addition, P2P network lending has low threshold, and fast, simple procedures, the amount of advantages for individuals and small and medium-sized enterprise lenders.

The mode of operation:Peer-to-peer lending (P2P lending) service platform is mainly for those with good credit but lack of funds, the college wage earners and small businesses, helping them to achieve the training, the purchase of home appliances, decoration and part-time business etc.. For these borrowers, they give loans without collateral, but by understanding the identity information, bank credit report their etc., to determine their loans and loan interest rates, then, the intermediary would provide this information to lenders, loan agreement reached by direct their double side, lenders get loan interest.

Development situation:

There are more famous abroadThe Grameen Bank,ProsperZopa, LendingClub, etc.. This model into China in 2006, is now in the stage of vigorous development, the peer-to-peer lending is one of the most representative platform mechanism.

Characteristic introduction:

Direct and transparentThe lender and the borrower directly signed between individualsLoan contract, one on one to understand each other's identity information, credit information, timely informed Lender Borrower repayment schedule and living condition improvement, the most vivid, intuitive experience yourself for others to create value.

CreditScreening in peer-to-peer lending model, lenders to borrowersCreditEvaluation and selection, high level of credit borrowers will receive priority to meet, it wasLoan interest ratesAlso may be more favorable.

Risk dispersion Lenders will funds dispersed to a plurality of the object, and provide a small amount ofLoanIn peer-to-peer lending, for example, investors lend 1000 yuan, the minimum bid amount is 50 yuan, up to 20 have funding needs, the risk is the best dispersion.

Low threshold, channel cost low:Peer-to-peer lending mode so that everyone can become the disseminators and users of credit, credit transaction can be very convenient, everyone can easily participate in, the social idle funds better configuration, the high income groups more than idle funds reasonably to the good credit and in need of help - income groups.

Significance.Peer-to-peer lending is a very small amount of the loan together to lend to a business model with capital needs of the population. Its social value is mainly manifested in meet the individual demand for funds, developmentPersonal credit systemAnd improve the rate of three aspects of the use of social idle funds:

1) in China, Bank ofPersonal credit loanThe requirement is very high, people face a lot of difficulties in financing from the banking system, peer-to-peer lending model for the funds needed to provide a newFinancing channels.

2) peer-to-peer lending is the main mode toPersonal creditBased on the evaluation ofLoan, which contribute to the development of the personal credit value manifests itself, improve the socialPersonal credit systemConstruction.

3) peer-to-peer lending model enlarges personal investment channels, increase the flow of funds, improve the using rate of social idle funds, promote the economic development.

"Peer-to-peer lending:" walk in the legalization of the way

Easy operation, flexible interest rates "peer-to-peer lending temporarily", is a new thing is officially sanctioned, but this means more, it needs more self purification, self-discipline

The CBRC and the business sector supervision "vacuum", in recent years, network lending platform "peer-to-peer lending" continues to expand the scale. While in Wenzhou folk lending a fear of the time, "online peer-to-peer lending" still be raging like a storm.

"Peer-to-peer lending", what to do?

In early autumn, a is located in the Beijing Haidian District extension, quiet environment of the three villas, 34 employees peer-to-peer lending site is through the audit and technical background to develop, run the young network lending platform.

The floor to ceiling glass cubicle office building, a layer of credit examination room is the most busy. More than ten square meters of office, more than a dozen staff are checking the loan applicant upload the identity, work and property certificates of authenticity, several other employees on the phone to investigate the borrower background.

Together to create Li Xinhe's "peer-to-peer lending" company by him and the number of graduates in Beijing University, Qinghua, Beijing University of Aeronautics and Astronautics, Cheung Kong Graduate School of business partner. Company in 2010 May to 1000000 funds registered in Beijing. Network lending company the operation will be a full year has recently been mentioned frequently, also "thanks to" more than a month to the regulators and the financial media "".

In August 23rd, the China Banking Regulatory Commission Office to internal notification form issued the "Chinese CBRC office on peer-to-peer lending related risk warning notice". The notice since mid September has been the industry after the open, peer-to-peer lending has again been placed under high magnification, the potential financial risks.

This is not the first presentation and risk supervision department "peer-to-peer lending" mode. But this round of the warning is in six times to raise the statutory deposit reserve ratio, an expanded deposit reserve base, raising interest rates three times and 67 issued central bank bills and a series of monetary tightening policy background, cause market concerns about network credit default risk.

The CBRC name, peer-to-peer lending site partners and staff was surprised, because it was mistakenly believe that the CBRC warning is this company.

However, when it comes to this invisible pressure, young partner Li Xinhe looked innocent laugh. "I believe that this round of exposure to the entire P2P industry will do more good than harm." The co-founder of the graduated from Mathematics Department of Peking University, told Chinese "Newsweek". He said "P2P industry", is the China Banking Regulatory Commission named "peer-to-peer lending".

"Peer-to-peer lending", refers to a recent British investors focus on individuals to create personal credit business intermediary services. In the lending process, network platform to play the role of the media, because the online transaction convenience, interest rate elasticity, and for flexible, personal and small business so it was very convenient source of funds.

In China, using peer-to-peer lending are the main users of Small and micro businesses, the working-class and rural primary students in need of capital, capital requirements in thousands to several million. It is because of peer-to-peer lending to fill large banks high threshold, cumbersome procedures for the some of the operations of the blank, the development lending patterns emerging and rapidly.

National Development Bank senior adviser, China microfinance industry experts said Wang Lingjun, big banks like a large pump, to pump the water out from the capital pool, transported to the large state-owned enterprises, the financing platform of the government and large private enterprises, like P2P and other microfinance mode of operation, with a rubber tube, a part of the water pumped from capital pool, leading to small businesses and households this level, from this perspective, is of positive significance.

Now, the domestic engaged in online network lending company about thirty, both peer-to-peer lending, ppdai such "pure line" lending platform, also has such as the appropriate letter this line, line and microfinance company. Since the establishment of the first personal credit business, five years, peer-to-peer lending company financing scale has been increased to 6000000000 yuan from 20000000 Yuan Drama in the first half of the year. Among them, one of the largest -- appropriate letter, the amount of its lending has reached 2000000000 yuan, with 60000 of the borrower.

Savage growth

Supervision layer for peer-to-peer lending model attitude.

Although is engaged in financial business, but the vast majority of domestic peer-to-peer lending companies are registered as electronic Business Company, not in bank supervision, and the place of registration of the business sector, usually don't have the professional ability of this emerging market, so the supervision, the CBRC stressed the risk of this network lending intermediary platform potential.

But as the risk hints, it is not hard to read between the lines from the CBRC tolerance and rationality of this folk finance new things.

Wang Lingjun think: CBRC "call" is "moderate, appropriate". Network lending company fills up the blank of traditional commercial banking business, so it should be in the context of risk prevention, to be promoted from encourage financial innovation angle. The Ministry of Commerce International Economic Exchange Center Director, poverty alleviation microfinance League Secretary General Bai Chengyu suggested, no longer use "underground finance" to describe the folk loan current.

In the view of peer-to-peer lending site partner Li Xinhe, now the network lending industry external environment, chaotic early as the Alipay payment to three parties of enterprise development. "Continuous improvement until the P2P this industry itself, have more space to play network lending enthusiasm to the folk finance will."

At present, the main worry, in the background of the real estate and "a high left" industry regulatory policy tightening, private funds may flow into the restricted industry through the "peer-to-peer lending" platform, thus affecting the effect of macro-control. Because the "peer-to-peer lending" industry itself and the lack of supervision, it is possible for the evolution of illegal financial institutions deposits, loans, even become illegal financing. In addition, if the "peer-to-peer lending" company to develop real estate two mortgage business, also affected the price of real estate market risks.

Under the lack of official institutions, network lending platform of their own risk to control, more from the hand of the market regulation and the enterprise internal control.

In peer-to-peer lending site as an example, the reporter found that the network lending platform in determine lending rates, interest rates are determined based on the borrower's credit rating and repayment period, and the lower limit set an upper limit of 24.4% and 6.10%. This is consistent with the Supreme People's court for civil lending rates highest defined, also in order to take care of lending financial interests.

In addition, the platform according to the credit audit for the borrower's credit rating up to seven levels, for the lender reference. Rating level means that the default rate of potential difference.

Although the loan amount can choose in the range of at least 3000 yuan, up 300000 yuan, but in order to spread the risks of potential defaults, regardless of size, each loan has been split into a minimum of 50 yuan a standard was cast. That is to say, return or risk of each loan is also shared by many lenders.

The borrowing and owing on the loan process, network platform only according to the "contract" principle, charging transaction fees and loan principal of 2%, as well as in the repayment period of every month to the borrower for the loan principal of 0.3% loan management fees. These transaction costs and management fees also support the 34 person company, also can be in a period of time to support the company to advance the potential default and the establishment of the risk margin.

"Prevention and control of risk can be said to be one of our core business of the whole platform." Another partner Yang Yifu told China peer-to-peer lending "news weekly". He said, the company currently platform default rate stability in the security level below 0.9%, this level is much better than the line under the default rate of borrowing.

In the credit audit office, auditor to verify each bank deposit certificate is accurate to format the authenticity. Yang Yifu said, they are often active search, through the network of colleagues and other feasible means of validation, verification of the borrower. And the audit department every weekend there are persons on duty, video "interview by the borrower to rest". Many peer-to-peer lending user said, this approach than the domestic bank credit card application to many.

"News weekly" the survey found China, engaged in the current "peer-to-peer lending" online business network lending platform, has established the related prevention and self regulatory measures. However, with the expansion of the loan capital, these measures can be effective, test time.

At present, the use of "pure online" borrowing like peer-to-peer lending company up to more than 30, most of the use of the third party payment platform for customers trust fund. In fact, including the payment of Po, third party payment enterprise, as the user provides automatic recharge, payment and capital of the trust function.

Whether the third party payment companies are willing to, they have been given the managed function on account of credit funds network. On the one hand, Alipay account to three party payment enterprise on anti-terrorism, anti money laundering supervision; on the other hand, "peer-to-peer lending" enterprises can only choose to believe that pay treasure to anti money laundering ability.

But once the capital pool is more and more big, the risk is self-evident. More worryingly, the money source network lending platform for general lenders have no review. Bank of China Shanghai branch law firm partner lawyer Chen Guang has publicly expressed its concerns: "if money is illegal income, such as smuggling, drug trafficking. Now through the network lending out money, come back, all washed up."

The risk of this potential, there have been the central bank officials and credit experts called for by an independent third party payment or supervision platform, to establish an effective firewall mechanism. At the same time, network lending platform set up loan risk reserve deposit account, the third party supervision.

At present, have been engaged in "peer-to-peer lending" companies began to invite the third party supervision of the trust fund. Red Hill venture in 2009 March registered online, 2010 November ushered in the research from the Research Bureau of the people's Bank on corporate profit model and risk prevention and control. In the central bank's suggestion, the red ridge top have found the industrial and commercial bank as the fund trustees, to become the industry's first network lending to banks managed.

The industry needs to be self purification

However, in the reform of capital market, so there are some speculators seeking a blank system.

The CBRC issued a risk warning, "peer-to-peer lending" industry is One's criminal conspiracy was unmasked. In September 15th, a company called "network lending company Baer venture" became the first by the public security organs of the investigation "peer-to-peer lending" platform.

After another "peer-to-peer lending" business bulletin, a credit users in borrowing from several network lending platform malicious late, use this money to fund this year in Jiangsu Nantong City, set up a company called "network lending company Baer venture capital", and then out various preferential conditions to raise funds from investors. Has been the website founder Nantong police arrested is while peer-to-peer lending business in advance of their overdue loan opportunity, to find a good opportunity.

This website in the introduction also deliberately show poor bank founder Mohammed. Professor Yunus's philosophy, claimed that the company to do the main microfinance, name unfortunately let the Nobel prize for many of the "peer-to-peer lending" under the banner of domestic enterprises.

Research on the credit of the scholars pointed out, it is the lack of perfect credit system, "peer-to-peer lending" in China development faced more challenges in violation of.

This point, in the network platform outside the line under the P2P credit, particularly in the field of. From the current situation, the P2P business line has been involved, to guarantee bond, trust financial service form, even for a few claims to line network lending "peer-to-peer lending" does not take the petty loan company license company, also under the banner of "peer-to-peer lending" under the banner of lending.

Industry insiders, the company although declared himself is network lending intermediary, but in practice this form in the volume of business accounted for a small Domestic Company. In fact, this kind of companies such as bank marketing of financial products to sell to customers can transfer credits. Through negotiate with customer agreed proportion of the rate of return, the company will customer funds transferred to the company to complete the investors, fund lending. This business is usually such enterprises accounted for the majority of business.

In the credit specialists, this is the most sensitive part of borrowing between individuals, also is the most easy to produce some risk. Once the company investors turn the creditor's rights to get funds to continue to lend, and then transfer credit risk, in virtually increased. But if investors not only use its own funds to lend, and borrowing from the bank lending, credit risk further on to the bank. Private investors generally believe, microcredit is the bottom line and control the risk within an organization, and can not be passed on to the public body.

At present, the personage inside course of study points out, engaged in individual credit scale biggest appropriate letter group in the country, may be in operation. For strongly questioned the anecdotal, appropriate letter group in September 19th in Beijing's CBD company headquarters have called a press conference.

The face of nearly 20 financial media company, CEO, investor Downing tried to defend themselves and the company's operation. However, the investor first time that he is on the platform of a lender. In the assignment of creditor's rights, Downing will be its own funds to lend a small amount of money demand of the customers, the formation of a P2P's claims, then he will be through the company's platform will be the transfer of creditor's rights to finance the wishes of the customer. He also stressed, "every transfer notarized by the third parties, there is no fiction and fraud."

However, the industry is still worried about the risk prevention and control in the transfer of creditor's rights when the appropriate letter is in place.

In his blog, micro credit union secretary general Bai Chengyu and the appropriate letter group representatives held a round of debate debate. He wrote, the public is worried that the rate risk lever company. "According to media reports, you have a registered capital of 100000000, but 2000000000 of total loans, of which Mr. Downing personal bonds right business accounted for? You understand?" He asked. However, the letter should not give a positive reply.

Central bank vice governor Du Jinfu in this year NPC and CPPCC revealed, the relevant regulatory authorities are aiming at the current situation of network lending, on how to define the network platform and online intermediary engaged in network borrowing service nature, status and relevant regulatory framework content.

At present, the majority of small Credit Company and network lending platform are also queuing to register as a trade association Chinese microfinance alliance members. As of the end of 2010, the organization has distributed in the 92 official members in 27 provinces and cities. Daily meetings where members also often participate in the association, and to discuss the peer-to-peer lending and officials and experts with the industry.

 

Peer-to-peer lending facing "three life" principle is tightening policy

  Since ha ha credit suddenly collapsed, the CBRC issued the risk warning, this policy vacuum "barbaric" P2P loans (peer-to-peer lending risk gradually exposed) mode. The future, with the principle of "tightening" policy gradually, enterprise P2P loans can survive, how to survive, or will depend on whether meet the "three big line of life and death" -- credit risk, capital chain lifeline line and policy of high voltage line test.

　　"Credit risk is the biggest risk "core

　　How to control is the key

In July 21st, claiming to be "the most rigorous Chinese network lending platform" ha ha credit for capital chain rupture announced the closure, thereby, risk peer-to-peer lending model has a rapid development once again triggered regulatory vigilance.

In August 25th, the CBRC issued "on the peer-to-peer lending risk prompt notification" (the office [2011]254) file, require the banking institutions to establish and "between peer-to-peer lending" conduit company's firewall, to prevent the "peer-to-peer lending" conduit company to help lenders to obtain funds from banks for borrowing.

For peer-to-peer lending businesses, borrowers do not have to provide any mortgage borrowers, and belong to low income and poor people, credit risk is significantly higher than that of other financial institutions.

It is reported, in foreign countries, because of the perfect credit rating system, the individual credit data. But at home, the authenticity of the peer-to-peer lending model can not control the borrower identity information, repayment ability, and even the use of funds. These can pose a potential risk of bad debts.

For how to ensure repayment rate, control the credit risks, appropriate letter CEO Downing in accepting Beijing Financial Channel interview that, in terms of risk control, on the one hand the letter should implement "five UNPROFOR" in rural business, five natural selection, if there is no credit, then others will not join you, so this the bundled credit, mutual constraints, implementation to ensure that 98% - 99% of the loan repayment rate.

At the same time, the letter should establish the repayment "risk capital". The letter should provide a service platform for both parties, is charged service fees, extracting 2% as the risk of gold from service fees, set up a system Xianxingpeifu; if the borrower owing on the loan risk, can be compensated by this part of the funds. In addition, the lender and the borrower is the direct lending relationship, the risk is borne by the lender. If the risk is generated, the lender is responsible for one part responsible for one part, platform.

Credit risk management is the core business of peer-to-peer lending business. The letter should CEO Downing has pointed out, the micro credit risk from credit risk, can solve the problem of credit risk management, sustainable development decides whether microfinance institutions to achieve fast.

In this regard, China Banking Regulatory Commission also pointed out that in the recently notified, foreign practice shows that peer-to-peer lending, credit risk, loan quality is far inferior to ordinary banking financial institutions.

　　Funds "lifeline line":

　　Ha ha credit funds Lianduanlie is warning

In July 21st, ha ha credit for market credit problems and a shortage of working capital, announced the closure of. But after the development of nearly 100000 members, the "aftermath" solution is simply to advance as of August 20th the lender failed to recover money.

For peer-to-peer lending companies, lenders, bad debts, lack of rising debt interest rebate commitment, may lead to capital chain rupture. Ha ha credit funds Lianduanlie, is P2P credit enterprises for example.

According to one family loan intermediary financial person in charge of the "Youth Daily", "ha ha credit" belongs to the company scale peer-to-peer lending industry bigger, so suddenly announced the closing of the larger effects.

The people who learned from the industry, the past two years the collapse of peer-to-peer lending small company number hundreds of, main reason is basically funds chain problems, but did not cause too much concern. Part of the small company fund lenders to guarantee the principal "security", once the borrower who appear large area of bad loans, can only rely on "refunding" means to continue to attract more funds to the lender, the Ponzi scheme is looming this peer-to-peer lending industry "".

Since this year, Wenzhou has more than business owners, civil servants and staff of bank borrowing after escaping cases. Since April, local Wenzhou Jiangnan leather, Portman, three flag group, Zhejiang Tianshi electronic closed. In August 1st, Wenzhou Jubang shoes company boss Wang Hexia missing. In August 5th, Fujian Jianyang Liu Bin case, more than a dozen Guarantee Corporation boss flight.

Private lending frequent crashes, senior government to release supervision signal. On August 21st, Vice Premier Wang Qishan said, "the current crackdown on illegal financial activities, is the social illegal fund-raising and market financial pyramid schemes, and earnestly safeguard the financial market order, hold no systemic, regional financial risk limits."

　　The policy of "high tension line":

　　Touch the macro policy, illegal fund-raising and loan sharking

Whether the effect of macro-control policies, whether the illegal fund-raising and usury, is suspended in a peer-to-peer lending business head of the "sword of Damocles Damour".

It is reported, in early September, the four major state-owned commercial bank deposits at the end of 8 the reduction of about 420000000000 yuan, the emergence of a rare record negative growth. Analytic personage points out, at present more folk financing even usury, may become the main field of savings diversion.

Notice that the China Banking Regulatory Commission suggested recently, risk, peer-to-peer lending intermediary service affects the effect of macro-control. In the national background of the real estate and "a high left" industry regulatory policy tightening, private funds may flow into the restricted industries through peer-to-peer lending conduit company.

In addition to the impact of macro-control policies, the CBRC also warning, peer-to-peer lending intermediary institutions may break through capital not into account the bottom line, the evolution of illegal financial institutions deposits, loans, even become illegal financing.

In addition, peer-to-peer lending by charging interest and fee revenue models, has evolved into the loan risk. As a leader in peer-to-peer lending industry, appropriate letter is a two-way service fee charged to lenders, the highest charge 2%, the borrower is charged ranging from about 1%-10%. At the same time, the company charge interest to the borrower, according to the letter should the September 16th statement, payment to the borrower's interest each year in 10%-12%.

At the same time, at the policy level, peer-to-peer lending there are lack of supervision problem. The CBRC has recently pointed out, the relevant legislation is not complete, the regulatory responsibilities unclear, properties of peer-to-peer lending is the lack of clearly defined laws and regulations.

"Peer-to-peer lending" hurt more than two people

   Mentioned loans, most people first reaction is the bank. But this year, as the credit crunch, many enterprises and individuals to turn to private lending. A person to personP2PModel which attracted many customers. But at present this is regulatory gaps, involved need to beware of the risks. For people in the bank outlets to fill orders for business.

  Not long ago, a Xingsha property developer was arrested for involvement in loan sharking, underground banks and other news that many people pay close attention to the folk lending. Reporters yesterday from the city was informed that the banking industry, a recent by the CBRC issued to commercial banks file, that is called a"Peer-to-peer lending"Borrowing patterns surfaced.

A P2PInstitutions as the money broker

  Only primary school culture, Hu Qinghua is one of this pattern of benefit. A mysterious organization recently in micro-blog revealed: Hu blowing a loan of 3000 yuan to buy their young and calves, come down one year to earn three pigs and a cow.

   But Hu Qinghua's loan not bank loans, but the P2P channel. This channel is the management called "peer-to-peer lending credit services conduit company (P2P)". In short, the P2P mechanism by collecting the borrower, lender, borrower collateral assessment such as real estate, automobile, equipment matching, in order for the intermediary services, similar to the role money brokers.

   Not long ago, as reported by the media, this is still in the regulatory gaps of P2P body surface. In August 23rd, ChinaThe China Banking Regulatory CommissionIssued a notice, remind the "commercial bank risk related to peer-to-peer lending". This notification is for commercial banks, but has already caused the attention.

B Changsha have peer-to-peer lending company

   This reporter learned of the situation is basically the same at the beginning of the year. The first day of the lunar year P2P mechanism of Chengdu Branch a surname Luo employees had telephone contact with reporters, promote its financial products, says the product is similar to the bank financial products, lending a minimum of 50000 yuan of funds, the company can find matching the debtor will spare cash to lend out, if in 1 years, at least can get more than 10% annual revenue. He said, "these funds will be allocated to those who need money, farmers, individual industrial and commercial households and students, interest rates will be slightly higher than the benchmark interest rate."

"The company is in a stage of rapid development, Changsha side branches under construction." Mr. Luo said the. Soon after, the reporters in the city several parking lot to see the clip in the company's publicity folding windscreen joint internal. Reportedly, the Changsha branch has been set up, many employees are doing credit business, but currently only accepting loan applications, while the banking application will not be accepted.

C Notice that the guard7High risk

A spread in the commercial banks in the "notice on the" peer-to-peer lending risk warning points out, at present P2P has 7 potential risks. Are: the impact of the national macro-control effects; easy to evolve for illegal financial institutions; the business is difficult to control the risk; false propaganda affects the overall reputation of the banking system; supervisory responsibilities unclear, the legal nature of the unknown;Credit riskOn the high side, loan quality is inferior to ordinary banking financial institutions; two real estate mortgage business also exist risks.

Seemingly borrowing behavior person to person, just one more intermediary Service Corporation, how will the risk spread to commercial banks? China microfinance League Secretary General Bai Chengyu pointed out, the petty loan company at present financing leverage limits. To avoid regulation, small loan companiesInvestorCan run a P2P Platform Co, loans to small loan company customer payment, and then through the P2P Platform Co to individual creditor's rights transfer to other contributors. Because investors person can not manage numerous customers, they can make credit management agent is composed of small loan companies through internal transactions, P2P platform and small loan companies collect agency fees. Because the transfer ratio no supervision of individual creditor's rights, so, financing leveraged investors increased. If investors turn the creditor's rights to get funds to continue to lend, then turn right, the leverage ratio can be enlarged unlimitedly, risk. If investors not only use its own funds to lend, and borrowing from the bank lending, credit risk is shifted to the banks.

D Experts say should be encouragedFinancial innovation

In fact, with the continuous negative interest rate situation, many of the hands of money has been difficult to meet in time deposits and bank financial rate of return, the initiative to higher risk, higher return investment channels. ThisPrivate lendingInstitutions have provided an outlet for the money.

Bai Chengyu think, P2P credit platform is a kind of financial innovation, to meet the needs of the financial markets, should be encouraged. But all financial innovation risks, should also pay much attention to the risk of P2P. Because it does not belong to a banking financial institution, but only to provide information service for both lenders and borrowers, to help the parties to transactions, the pure line of P2P platform not only financial institutions, advisory bodies, do not need to be regulators of financial. But as information service institutions, the risk is real reliable information. Therefore, the online P2P regulatory focus on: P2P must provide transparent information platform for debit and credit, reduce line caused by asymmetric information, including to provide credit risk loans ratio of whole platform and real effective interest rate.