Abstract:
This paper investigates the key principles of internet finance that improves SME finance credit availability. We proposes “flow dilutes risk” as a new measure of risk management for internet-based microfinance, which help SME finance by better using “Law of Large Numbers”. Internet-based microfinance should improve their risk management methods to do more small loans in a simple,basic and correct way. Loans with collateral and with higher levels of borrower leverage are likely to result in larger NPL ratio. Business entity borrowers have higher credit risk than enterprise owner and individual borrowers. Cross jurisdiction risks are significantly positively associated with loan default risk.
蔡闽. 流量覆盖风险——网络小额信贷风险控制新思路[J]. 金融研究, 2016, 435(9): 131-144.
CAI Min. Flow Dilutes Risk:A New Measure of Risk Management for Internet Microfinance. Journal of Financial Research, 2016, 435(9): 131-144.
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