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Current Situations and Issues of Peer-to-Peer Lending Asymmetric Information on Peer-to-Peer Lending
Nanae Fujiwara
Keiai University
This paper studies for peer-to-peer lending (P2P lending). I summarize the overall condition of P2P Lending market and analyze prior literatures on P2P Lending. Information is asymmetrically distributed between borrowers and lenders. Loans are not collateralized and lenders face the inherent risk. In order to reduce information asymmetries, Advanced P2P Lending Services provide an individual rating in cooperation with the credit reporting agency and utilize social network.
