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PS14 Lessons from the rise and fall of Chinese peer-to-peer lending

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journal contribution
posted on 29.07.2020, 13:19 authored by Chen Ding, Anil Savio Kavuri, Alistair MilneAlistair Milne
This paper reviews the development and assesses the future of Peer-to-Peer (P2P) lending in China. Chinese P2P lending has expanded by a factor of 60 over the four years from 2013 and 2017. Consequently, it is now much greater, both in absolute terms and relative to the size of the economy, than in any other country. The industry though has been plagued by problematic often fraudulent business models in what was, until 2015, effectively a regulatory vacuum. A strict new regulatory regime is currently being introduced. However, its introduction, especially the requirements on capital requirements and registration, are substantially reducing the volume of P2P lending. We consider the future of P2P lending concluding that it is facing substantial uncertainties.

History

School

  • Business and Economics

Department

  • Economics

Published in

Journal of Banking Regulation

Volume

22

Pages

133–143

Citation

Ding, C., Anil S. Kavuri, A.S. and Milne, A., (2020). PS14 Lessons from the rise and fall of Chinese peer to peer lending. Journal of Banking Regulation, doi:10.1057/s41261-020-00132-2.

Publisher

Palgrave Macmillan (part of Springer Nature)

Version

AM (Accepted Manuscript)

Rights holder

© Springer Nature Limited

Publisher statement

This is a post-peer-review, pre-copyedit version of an article published in Journal of Banking Regulation. The definitive publisher-authenticated version Ding, C., Kavuri, A.S. and Milne, A., (2020). PS14 Lessons from the rise and fall of Chinese peer to peer lending. Journal of Banking Regulation, doi:10.1057/s41261-020-00132-2 is available online at: https://link.springer.com/article/10.1057/s41261-020-00132-2.

Acceptance date

23/07/2020

Publication date

2020-08-17

Copyright date

2021

ISSN

1465-4830

eISSN

1750-2071

Language

en

Depositor

Prof Alistair Milne Deposit date: 28 July 2020