Risk Assessment and Measurement of P2P Industry

Since 2018, under the tightened liquidity in the macro-economy and the strengthened national regulatory forces, P2P lending platforms have frequently encountered liquidity and solvency problems, resulting in suspension and liquidation. In view of this issue, this paper intends to measure and evaluate the risks of P2P industry through both theoretical analysis and empirical research. Specifically, this paper selects data of 14 risk impact indicators and 38 P2P online lending platforms and builds factor analysis model to measure the risk of P2P platforms. Then this paper establishes comprehensive scoring model and uses cluster analysis method to test data accuracy. Finally, this paper explores the shortcomings of China's P2P industry and puts forward reasonable suggestions to overcome these shortcomings, so as to promote the better and faster development of China's P2P industry.