Development Status, Causes of Risks, and Risk Supervision Suggestions on Internet Finance in China

Abstract

As a useful supplement to China’s financial system, the development of internet finance has promoted the innovation of financial model and injected strong vitality into the financial market. Internet finance provides customers with more convenient and fast financial services, effectively alleviates financial exclusion, and reduces information asymmetry. It is of great significance to promote the marketization of interest rate and the development of inclusive finance in China. However, internet financial risk events occur frequently, posing a serious challenge. Therefore, this research analyzes the causes of internet financial risks, and provides suggestions on internet financial risk supervision, so as to promote a healthy development of the internet financial industry in China.