Discussion of the Risks and Risk Control of P2P in China

As a kind of finance innovation for direct lending between individuals, P2P develops rapidly in recent ten years. However, while it is promoting China’s economic development, various problems related to P2P network credit and loan are appearing gradually. If P2P wants to develop continuously, the core is to strengthen the risk management. Based on the analysis of the concept, model and positive significance of P2P network credit and loan, this paper mainly expounds the credit risks, information risks, operational risk, regulatory and legal risks and liquidity risk that P2P network credit and loan faces, and comes up with the solutions to these problems, for example, setting up the credit system, perfecting internal control as well as strengthening supervision and industrial self-regulation, combining big data technology. These present some new ideas of performing risks management for P2P.