P2P lenders to form industry watchdog, paper says
Beijing is marshalling peer-to-peer lenders to set up an industry association to foster better self-regulation of the sector, National Business Daily reported Tuesday, citing an industry source. The association, to be launched by the end of March or April, is expected to cover information disclosure, big-data risk control as well as registration of financial products by P2P lenders, the report said. The members will include P2P upstream and downstream players, such as private capital firms and big-data service providers, it said. P2P lending is the practice of lending money to unrelated individuals and small businesses without going through a bank. It takes place via P2P websites and attracts much higher lending rates. But, more P2P lenders are facing operational problems, putting the investors’ money at risk and prompting calls for tougher oversight.
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