Tuesday, July 24, 2012

China Shadow Bankers Go Online As Peer-To-Peer Sites Boom


  • ...country’s unregulated $2.4 trillion shadow-banking system, move online. More than 2,000 websites have been set up nationwide since 2007, China National Radio reported in May.
  • About 80 percent of the total 400 million yuan of lending brokered by Ppdai since 2007 has gone to small businesses, Zhang said.
  • Only 3 percent of China’s 42 million small and medium-sized firms are able to get loans from banks, according to an estimate by Citic Securities Co., while 36.7 trillion yuan of household savings are parked in banks.
  • The default rate of LendingClub Corp., a U.S. peer-to-peer lending site which issues consumer loans of as much as $35,000 for everything from home repair to exotic vacations, has been below 3 percent since its inception in 2007, while at Prosper the loan-loss rate is about 5 percent, according to the companies’ websites.

http://www.bloomberg.com/news/2012-07-23/china-shadow-bankers-go-online-as-peer-to-peer-sites-boom.html

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