Supervision of Peer-to-Peer Lending in China

The development of Internet lending information intermediaries requires the guidance of the legal system. It is necessary to pass laws to define the legal status of online lending information intermediaries. Based on the analysis of the domestic P2P lending operation model and development trend, the author summarizes the risks faced by P2P network lending, and puts forward suggestions from three perspectives: government, platform, and lenders, including effective regulation of the main body and improvement of laws and regulations. The P2P platform needs to fulfill its obligations as an information intermediary, such as information disclosure and investor protection. The government should strengthen supervision and coordination among the central financial regulatory agencies and local financial regulatory agencies so that the government can promote financial innovation while at the same time effectively preventing financial risks. Penetrating supervision measures shall be taken and the responsibilities shall be specified according to the business nature. Industry associations should establish sound industry guidelines and form effective self-regulatory mechanisms, including reputation mechanisms, diversified dispute resolution mechanisms, and industry risk protection funds.