Abstract
Optimizing the financial risk control mechanism is very important for small and medium-sized enterprises. It is an important foundation for lending companies to continue to operate steadily and ensure the safety of credit assets. Only by optimizing the financial risk control mechanism can small and medium-sized enterprises develop better and healthily. This study designs the data envelopment analysis (DEA) model (CCR and BCC) to evaluate the relative credit risk of the enterprise. According to the selected core indicators, comprehensive technical efficiency, pure technical efficiency and scale efficiency of each lending platform are calculated. In order to further explore the efficiency status of each lending platform and the reasons for its inefficiency, the efficiency pedigree was drawn according to the pure technical efficiency value and scale efficiency value of the platform. The main reason for the low efficiency of online loan platform was the low management level. Therefore, we need to improve the comprehensive management level of the platform, and strengthen the risk management control to improve the operation efficiency of the online loan platform. Finally the related policy proposal was put forward.
Highlights
Peer to Peer (P2P) network lending, personal to personal loan, is a business model that gathers a very small amount of funds to lend to people with capital needs
It can be found that the number of new entrants in the P2P online lending industry has decreased significantly and even there has been no new platform for several consecutive months, which is in sharp contrast to the popularity in 2017
In the selection of indicators, the meaning of credit risk represented by the indicators is considered, and the credit risk analysis indicators are selected based on the availability of data, and the indicators are handled differently from the previous literature in order to reduce the indicator distortion caused by time period or accidental reasons
Summary
Peer to Peer (P2P) network lending, personal to personal loan, is a business model that gathers a very small amount of funds to lend to people with capital needs. The rapidly developing P2P network loan industry has solved the problem of insufficient financing needs and personal financial needs of small and medium-sized enterprises in China. This leads to the risk management method being too fragmented, simplified and unsystematic It is very important for the healthy development of lending platforms, especially small and medium-sized enterprises, to optimize the financial risk control mechanism. We discussed the results and put forward suggestions for improving risk control management
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