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Risks in the Online Lending Industry

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Financing the Underfinanced

Abstract

The online lending industry emerges with the development of the internet, and is currently still in the early stage of its development in China without laws and regulations designed specifically for online lending industry. As a result, there are no entry barriers in online lending industry. Some platforms can get online hastily by simply purchasing and modifying some less expensive website templates. Lacking clear industrial standards, the fast development of P2P online lending industry in China cannot guarantee the quality of the platforms at the very beginning. At present, the high quality and low quality platforms co-exist, which highlights the risks involved day by day in the industry. This chapter will analyze several types of risks confronted by participants in online lending from the perspective of the whole industry.

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Notes

  1. 1.

    He and Wang [1].

  2. 2.

    Gao and Jing [2].

  3. 3.

    Disclosure: Cash Withdraw Difficulties at Hopexd: http://bbs.wangdaizhijia.com/thread-63980-1-1.html.

  4. 4.

    Li [3].

  5. 5.

    Chinapnr: http://www.chinapnr.com/.

  6. 6.

    Ips: http://www.ips.com.cn/.

  7. 7.

    Gopay: https://www.gopay.com.cn/.

  8. 8.

    Yeepay: http://www.yeepay.com/.

  9. 9.

    95epay: http://www.95gateway.com/.

  10. 10.

    Taste the Flavor of P2P Online Lending Industry: Choose the Right Direction after Identifying Risks: http://xmwb.xinmin.cn/html/2014-02/28/content_44_1.htm.

  11. 11.

    Yan [4].

  12. 12.

    Ministry of Finance of the People’s Republic of China, http://www.mof.gov.cn/zhengwuxinxi/caizhengwengao/caizhengbuwengao2001/caizhengbuwengao20018/200805/t20080519_21374.html.

  13. 13.

    Pan [5].

  14. 14.

    Reference [6].

  15. 15.

    Reference [7].

  16. 16.

    Guan [8].

  17. 17.

    Yuan [9, 10].

  18. 18.

    The Central Government of the People’s Republic of China, http://www.gov.cn/banshi/2005-07/11/content_13695.htm.

  19. 19.

    Lu and Ding [11].

  20. 20.

    China Securities Regulatory Commission, http://www.csrc.gov.cn/pub/newsite/flb/flfg/flxzsf/201312/t20131205_239325.html.

  21. 21.

    The Supreme People Court of the People’s Republic of China, http://www.court.gov.cn/qwfb/sfjs/201101/t20110107_12908.htm.

  22. 22.

    The Ministry of Public Security of the People’s Republic of China, http://www.mps.gov.cn/n16/n1282/n3493/n3763/n493954/494322.html.

  23. 23.

    The Central Government of the People’s Republic of China, http://www.gov.cn/flfg/2005-06/27/content_9785.htm.

  24. 24.

    The Central Government of the People’s Republic of China, http://www.gov.cn/flfg/2005-06/27/content_9785.htm.

  25. 25.

    The National People’s Congress of the People’s Republic of China, http://www.npc.gov.cn/wxzl/wxzl/2000-12/06/content_4470.htm.

  26. 26.

    According to Article 6 of The People’s Supreme Court’s Opinions of People’s Court Hearing of Lending Cases, the interest rate of private lending can be appropriately set higher than that of banks, and the local court can make a judgment according to local situations. However, the maximum rate cannot exceed 4 times the lending interest rate of the banks. The exceeded part is not protected by law.

  27. 27.

    He and Wang [12].

  28. 28.

    Disposal of Illegal Fund-Raising Inter-Ministerial Joint Meeting, November 25th, 2013, http://money.163.com/13/1126/18/9EKJS8SQ00252H36.html.

  29. 29.

    The People’s Bank of China, http://www.pbc.gov.cn/publish/zhifujiesuansi/1065/2010/20100913202740136229078/20100913202740136229078_html.

  30. 30.

    The Central Government of the People’s Republic of China, http://www.gov.cn/flfg/2010-06/21/content_1632796.htm.

  31. 31.

    The Central Government of the People’s Republic of China, http://www.gov.cn/gzdt/2010-12/03/content_1759169.htm.

  32. 32.

    The People’s Bank of China, http://www.pbc.gov.cn/publish/tiaofasi/584/2013/20130609165007685266533/20130609165007685266533_html.

  33. 33.

    Gao [13].

  34. 34.

    Yang [14].

  35. 35.

    Luo [15].

  36. 36.

    http://www.hljdb.com.cn/new_right.aspx?id=1226&k=n2; http://www.xixianxinqu.gov.cn/tongxuehui/zcdd/2014/0207/1612.html.

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Authors and Affiliations

  1. Metuchen, NJ, USA

    Jiazhuo G. Wang

  2. Shanghai, China

    Hongwei Xu & Jun Ma

Authors
  1. Jiazhuo G. Wang
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  2. Hongwei Xu
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  3. Jun Ma
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Correspondence to Jiazhuo G. Wang .

Editor information

Editors and Affiliations

  1. Metuchen, New Jersey, USA

    Jiazhuo G. Wang

  2. Shanghai, China

    Hongwei Xu

  3. Shanghai, China

    Jun Ma

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Wang, J.G., Xu, H., Ma, J. (2015). Risks in the Online Lending Industry. In: Wang, J., Xu, H., Ma, J. (eds) Financing the Underfinanced. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-46525-7_5

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  • DOI: https://doi.org/10.1007/978-3-662-46525-7_5

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