Douglas Arner and Janos Barberis
Journal of Financial Perspectives
Dec 2015, Vol. 3, Issue 3, pp 78-91
Abstract: In July 2015, China’s peer-to-peer (P2P) lending platforms 2,136, with settlements of about RMB82.5 billion transactions in that single month, making it the country with the most P2P platforms in the world. As the sector went from one platform in 2007 to more than an estimated 2,000 platforms currently, the P2P sector went from too-small-to-care to too-big-to-fail, attracting a new level of regulatory scrutiny. Ultimately, this systemic shift offers China a regulatory and market reform opportunity with profound consequences for the country and the developing world. Indeed, the Internet Finance Guidelines released in July 2015 indicate that the country is creating both a financial market infrastructure and a regulatory framework that is built with financial technology (FinTech) in mind. Click here to download the full article.