Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
PEER-TO-PEER LENDING: THE EFFECTS OF INSTITUTIONAL INVOLVEMENT IN SOCIAL LENDING
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2015 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis examines the consequences of an increased institutional involvement in the recently emerging lending business known as peer-to-peer lending (P2PL).

Since the P2PL business itself is a type of originate-to-distribute (OTD) lending model – in which the originator never carries the risk for the loans – this thesis investigates the effects it can have on the quality of the screening of potential borrowers, and if it could create a misalignment of interests between different stakeholders in the P2PL market. It also examines how the information asymmetry in the screening process is affecting moral hazard behavior and adverse selection problems.

From the empirical research – which was gathered from interviews with significant participants in the Swedish P2PL market and the financial market as a whole – the authors find that an increased institutional involvement seems to come hand-in-hand with an increased loan volume, which creates incentives for the P2PL companies to ease their screening of borrowers and thus decreasing the average quality of the loans they originate. Furthermore, it shows evidence of great similarities between the current P2PL market and the sub-prime mortgage market that was the cause of the financial crisis in 2008. By comparing different geographic P2PL markets the thesis is providing the reader with four development phases that the P2PL markets seem to follow.

Place, publisher, year, edition, pages
2015. , 50 p.
Keyword [en]
Peer-to-Peer Lending, Institutional Involvement, Originate-to-Distribute Model, Secondary Market, Screening Incentives, Information Asymmetry
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-26636ISRN: JU-IHH-FÖA-2-20150047OAI: oai:DiVA.org:hj-26636DiVA: diva2:812631
Subject / course
IHH, Business Administration
Presentation
2015-05-18, Jönköping International Business School - 3008, Gjuterigatan 5, Jönköping, 13:50 (English)
Supervisors
Examiners
Available from: 2015-06-12 Created: 2015-05-19 Last updated: 2015-06-12Bibliographically approved

Open Access in DiVA

Claesson & Tengvall(2590 kB)680 downloads
File information
File name FULLTEXT01.pdfFile size 2590 kBChecksum SHA-512
baa5ad6b8157c449c93da0433163859ad084c1194ca6a019d00360466a88f49eb732d0b42e3f0bb6acf270a75428af5d6df338461d11eb1ffffb4a1b002b87ba
Type fulltextMimetype application/pdf

By organisation
JIBS, Business Administration
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 680 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 1183 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf