scholarly journals Fed Liftoff and Subprime Loan Interest Rates: Evidence From the Peer-to-Peer Lending Market

2016 ◽  
Author(s):  
Christoph Bertsch ◽  
Isaiah Hull ◽  
Xin Zhang
Keyword(s):  
Interest Rates ◽  
Peer To Peer ◽  
Peer Lending ◽  
Loan Interest Rates

Organized crime in cyberspace: How traditional organized criminal groups exploit the online peer-to-peer lending market in China

2020 ◽  
Author(s):  
Peng Wang ◽  
Mei Su ◽  
Jingyi Wang
Keyword(s):  
Interest Rates ◽  
Police Officers ◽  
Physical Violence ◽  
Peer To Peer ◽  
Social Contacts ◽  
Loan Repayment ◽  
News Reports ◽  
New Strategy ◽  
Peer Lending ◽  
Criminal Groups

Abstract How do traditional organized criminal groups run their offline businesses on the internet? Drawing on interview data, news reports and interactions with illegal moneylenders, this article examines how loan sharks use the online peer-to-peer lending market to lend money to Chinese students at exorbitant interest rates. Illegal lenders employ techniques of deception, the sharing of compromising information (e.g. social contacts and nude photos) and professional legal services to develop internet-based loan scams to trap student borrowers. To enforce loan repayment, lenders have developed a new strategy: relational repression, which is the use of cyberviolence and the threat of revealing damaging information to clients’ social contacts. This puts enormous pressure on clients and their families to make payments. The use of relational repression reduces the need to resort to physical violence and bribe police officers.

EDUCATION PREMIUM IN THE ONLINE PEER-TO-PEER LENDING MARKETPLACE: EVIDENCE FROM THE BIG DATA IN CHINA

2018 ◽  
Vol 63 (01) ◽  
pp. 45-64 ◽  
Author(s):  
JUANJUAN CHEN ◽  
YABIN ZHANG ◽  
ZHUJIA YIN
Keyword(s):  
Higher Education ◽  
Big Data ◽  
Interest Rates ◽  
Lower Risk ◽  
Education Level ◽  
Peer To Peer ◽  
Bachelor's Degrees ◽  
P2p Lending ◽  
Peer Lending

We study the education premiums in the online peer-to-peer (P2P) lending marketplace in which individuals bid on unsecured microloans applied by individual borrowers. Using more than 100,000 consummated and failed listings from the largest online P2P lending marketplace in China — Paipaidai.com, we examine whether higher education level lead to lower interest rates and lower risk of default. We find that controlling for other characteristics of borrowers, borrowing rates of borrowers with bachelor’s degrees is 0.141 percent higher than that of borrowers with associate’s degrees, and that female borrowers’ education premiums were higher than their male counterparts. With regard to loan performance, borrowers with bachelor’s degrees are 13% less likely to default than the borrowers with associate’s degrees. Therefore, the education premiums in the P2P lending marketplace are rational.

Prediction of Default Risk in Peer-to-Peer Lending Using Structured and Unstructured Data

2020 ◽  
Vol 31 (1) ◽  
pp. 115-129
Author(s):  
Jei Young Lee
Keyword(s):  
Interest Rates ◽  
Default Risk ◽  
Peer To Peer ◽  
Growth Potential ◽  
Unstructured Data ◽  
Loan Default ◽  
Market Opportunities ◽  
Default Rate ◽  
Loan Interest Rates ◽  
Using Data

Using data from Lending Club, we analyzed funded loans between 2012 and 2013, the default status of which were mostly known in 2018. Our results showed that both the borrower characteristics and the conditions of the loan were significantly associated with the loan default rate. Results also showed that the sentiment of a user-written loan description influenced the borrower's loan interest rates. It contributes to expanding the scope of peer-to-peer (P2P) loan research by implementing unstructured data as a new model variable. Financial counselors need to consider the growth potential of the P2P loan market using data analysis: This will reveal niche market opportunities, enabling the development of services necessary for the safe supply of small loans at reasonable interest rates.

scholarly journals FINTECH PEER-TO-PEER LENDING SEBAGAI PELUANG PENINGKATAN UMK DI INDONESIA

Media Ekonomi ◽  
2019 ◽  
Vol 26 (2) ◽  
pp. 121
Author(s):  
Suci Romadhona ◽  
Muhammad Zilal Hamzah ◽  
Eleonora Sofilda
Keyword(s):  
Interest Rates ◽  
Behavioral Intentions ◽  
Structural Equation ◽  
Positive Influence ◽  
Peer To Peer ◽  
Equation Modeling ◽  
Independent Variables ◽  
Five Factors ◽  
Actual Use ◽  
Peer Lending

<em>This research was conducted to determine the effect of the factors driving MSEs in making loans to peer-to-peer lending companies. Factors that are considered by MSEs in seeking financial resources through peer-to-peer lending are loan processes, interest rates, loan processing costs, loan amounts, and loan application flexibility. These five factors will then be used as independent variables to see behavioral intentions and the actual use of a peer-to-peer lending platform. <em>This research method uses Structural Equation Modeling (SEM) and WrapPLS 6.0 test equipment. <em>The results of this study found that the loan process had no significant effect on behavioral intentions and other factors had a positive influence and the highest factor affected MSEs borrowing on this platform was the flexibility of loan applications. With the aspirations of MSEs, peer-to-peer lending companies in Indonesia can improve services so that business capital loan transactions increase and advance the economy of MSEs in Indonesia.</em></em></em>

Strategi Pengelolaan Risiko dan Peningkatan Kualitas Pengelolaan Kas Negara

2017 ◽  
Vol 2 (2) ◽  
pp. 43-54
Author(s):  
Agung Mulyono
Keyword(s):  
Interest Rates ◽  
Financial Risk ◽  
Vector Autoregression ◽  
Secondary Market ◽  
Key Factors ◽  
Bond Price ◽  
Hedging Strategy ◽  
Foreign Loan ◽  
Term Operation ◽  
Loan Interest Rates

Cash management is  one of treasury’s main functions in which has a potential financial risk. A potential financial risk emerges when State Treasurer manages cash surplus and or/ shortages in order to maintain optimum liquidity. By applying Vector Autoregression (VAR) system on empirical data provided by Bank Indonesia and the Ministry of Finance of Indonesia, we found that currency value  flunctuation is a significant factor for repayment value of foreign loan. Interest rates and amount of government’s bond held by foreign investors are also variables impacted on government’s bond price movement in secondary market. Currency value  flunctuation and price of government’s bond in secondary market are the key factors that have to be considered by State Treasurer (BUN) in managing state’s money. Hedging strategy by using derivatif product is possible to be utilized by State Treasurer (BUN) due to it’s flexibility for short-term operation.   Abstrak Pengelolaan kas negara merupakan salah satu fungsi pokok perbendaharaan yang dalam proses pelaksanaannya menyimpan potensi berbagai risiko keuangan. Risiko keuangan, khususnya dalam investasi berpotensi muncul ketika Bendahara Umum Negara (BUN) melakukan kegiatan pengelolaan kelebihan dan/ kekurangan kas dalam rangka menjamin ketersediaan dan optimalisasi kas. Dengan menggunakan analisis Vector Autoregression (VAR) atas data empiris yang diperoleh dari Bank Indonesia dan Kementerian Keuangan Indonesia, penulis menemukan bahwa fluktuasi nilai tukar mata uang merupakan faktor yang signifikan terhadap besaran pembayaran utang luar negeri pemerintah. Tingkat suku bunga acuan dan pergerakan besaran kepemilikan SUN oleh investor asing juga merupakan variabel yang berpengaruh terhadap pergerakan harga SUN di pasar sekunder. Fluktuasi nilai tukar mata uang dan pergerakan harga SUN di pasar sekunder menjadi faktor penting dalam pelaksanaan investasi yang dilakukan BUN dalam rangka pengelolaan kelebihan dan/ kekurangan kas. Berdasarkan hasil tersebut, strategi pengelolaan risiko atau hedging dengan menggunakan produk-produk derivatif dalam pengelolaan kelebihan dan/ kekurangan kas jangka pendek – menengah sangat dimungkinkan karena sifat instrumen derivatif yang fleksibel.

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