Can peer-to-peer lending platforms mitigate fraudulent behaviors?Or have lending players been acting similar to free-riders?This paper constructs a new proxy to investigate lending platform misconduct and compares the...Can peer-to-peer lending platforms mitigate fraudulent behaviors?Or have lending players been acting similar to free-riders?This paper constructs a new proxy to investigate lending platform misconduct and compares the FICO score and the LendingClub credit grade.To examine whether the lack of verification by the Fintech platform affects lenders’collection performance,I explore the recovery rate(RR)of non-performing loans through a mixed-continuous model.The regression results show that the degree of prudence taken by the lending platform in the pre-screening activity negatively affects the detection of some misreporting borrowers.I also find that the Fintech platform’s missing verification information(e.g.,annual income and employment length)affects the RR of non-performing loans,thereby hampering lenders’collection performance.展开更多
China＇s robust economy is bringing unprecedented growth and prosperity to the country. However, there is ample evidence to suggest that weaknesses in the banking system and the slow progress in reforming those weakne...China＇s robust economy is bringing unprecedented growth and prosperity to the country. However, there is ample evidence to suggest that weaknesses in the banking system and the slow progress in reforming those weaknesses may cause disruption to continued economic growth. Bad loan portfolios as well as inadequate capital ratios point to the lack of proper governance and credit cultures at many banks. Unless these issues are quickly and properly addressed, the economic engine that drives the country will be at risk.展开更多
文摘Can peer-to-peer lending platforms mitigate fraudulent behaviors?Or have lending players been acting similar to free-riders?This paper constructs a new proxy to investigate lending platform misconduct and compares the FICO score and the LendingClub credit grade.To examine whether the lack of verification by the Fintech platform affects lenders’collection performance,I explore the recovery rate(RR)of non-performing loans through a mixed-continuous model.The regression results show that the degree of prudence taken by the lending platform in the pre-screening activity negatively affects the detection of some misreporting borrowers.I also find that the Fintech platform’s missing verification information(e.g.,annual income and employment length)affects the RR of non-performing loans,thereby hampering lenders’collection performance.
文摘China＇s robust economy is bringing unprecedented growth and prosperity to the country. However, there is ample evidence to suggest that weaknesses in the banking system and the slow progress in reforming those weaknesses may cause disruption to continued economic growth. Bad loan portfolios as well as inadequate capital ratios point to the lack of proper governance and credit cultures at many banks. Unless these issues are quickly and properly addressed, the economic engine that drives the country will be at risk.
