ABSTRACT
P2P lending refers to small unsecured loans between individual and individual, which establishes lending relation and completes the related formalities directly through the internet platform without banks and other financial institutions as intermediaries[1]. P2P lending is different from traditional lending. P2P lending has the characteristics of low threshold of loans, wide coverage, fast circulation of information, convenient trading formalities, small amounts involved, short loans period and so on. These incomparable advantages over formal financial institutions solve the financing problem of small and medium-sized enterprises, which is called online edition of folk lending. However, network virtual characteristic, information asymmetry and imperfection of risk control measures platform increase the possibility of borrowers defaults, because P2P lending is based on network platform, which increases the credit risk of P2P lending. Therefore evaluating the credit risks of the P2P lending has important practical significance for maintaining the stability of financial system.
