BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/05
The availability of P2P lending services exploded last year. An investor survey found that P2P loans, due to their “guaranteed” high returns, were the number-three favourite form of investment in China. By some estimates, the P2P lending market rose last year to nearly 1 trillion yuan (€140 billion) or about four times the 2014 amount. Regulations for the P2P lending industry are still in drafting phase.
As the number of loosely or not at all regulated financial vehicles has soared in recent years, the number of financial abuses has grown and new fraud cases will surface.