Research on the Default Risk Evaluation of Borrowers from Online Peer-to-Peer Lending Based on Survival Analysis

DOI

10.2991/aebmr.k.191217.087How to use a DOI?

Keywords

Online Peer-to-Peer Lending, Default Risk, Survival Analysis, Cox Proportional Hazards

Abstract

This paper evaluates borrowers’ default risk from online peer-to-peer lending and discuss related influencing factors. Based on the theoretical method of survival analysis, adopting semi-parametric estimation method, and using the loan data of Lending Club, Cox proportional hazards model is developed to research empirically. The findings are shown as follows: (1) Term of loan, credit rating, annual income and line recycling rate are protective factors, and with the increase of these variables, the possibility of loan default is reduced. (2) Rate of loan, debt-to-income ratio and number of bad public records are risk factors, and as these variables increase, the possibility of loan default is increased.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yaqiong Pan
AU  - Qiong LIU
PY  - 2019
DA  - 2019/12/20
TI  - Research on the Default Risk Evaluation of Borrowers from Online Peer-to-Peer Lending Based on Survival Analysis
BT  - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)
PB  - Atlantis Press
SP  - 487
EP  - 490
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191217.087
DO  - 10.2991/aebmr.k.191217.087
ID  - Pan2019
ER  -