Abstract
As we discussed in Chap. 1, P2P lending is one of the main models of the development of Internet finance. However, P2P lending is well-known for the risk of frequent bankruptcy. How do we think about the risks in financial innovation? In this chapter, we give a comprehensive introduction to P2P lending, with a focus on its bankruptcy risk.
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Notes
- 1.
The Chinese name for E Zu Bao is “E租宝”, and that for Fan Ya is”泛亚”.
- 2.
The Chinese name for the regulation is《网络借贷信息中介机构业务活动管理暂行办法》.
- 3.
They are also called “three problems for rural areas”(“三农”)in China.
- 4.
The fee ranges from 1% to 5% of the transaction value of the loans.
- 5.
It turns out that most of the external guarantees are also from subsidiaries of Yucheng Group company.
- 6.
The Chinese name of Finance 360 is “融360”.
- 7.
Fan Ya states that some commercial banks are the third-party banks for supervision, and investors can buy Ri Jin Bao products directly from commercial banks. However, no commercial banks acknowledge that they have sold Ri Jin Bao products.
- 8.
The Chinese name for Hu Run is “胡润”.
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Liu X, Ni X, Qiu Z et al (2021) Like a moth to a flame: does the stock market exacerbate credit risks of peer-to-peer (P2P) lending? Available at SSRN 3905453, 2021
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Qiu, Z., Huo, X., Dai, Y. (2022). P2P Risk. In: Fintech and Financial Risk in China. Contributions to Finance and Accounting. Springer, Singapore. https://doi.org/10.1007/978-981-19-0288-8_3
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DOI: https://doi.org/10.1007/978-981-19-0288-8_3
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