Chinese male borrowers have more P2P defaults than females: report

Source:Global Times Published: 2019/1/23 22:38:41


Photo: VCG



Chinese men generate three times defaults on peer-to-peer (P2P) online loans as the opposite sex, domestic news site 21jingji.com reported on Wednesday, citing a report on credit.

Borrowers in central and western provinces have markedly higher default rates than those in coastal provinces, and those with a senior high school education or lower are more likely to default than those with a college education or higher, according to a report jointly released by Shanghai-based risk management services provider CreditForce, Shanghai Social Credit Promotion Center and a research center of Shanghai Jiao Tong University.

The report, which studied patterns of blacklisted borrowers, also found that 73.6 percent of the defaulters earned 8,000 yuan ($1,178.39) or less per month and most of the defaults involved the first loans taken by these people.

The report said an industry reshuffle had caused many people to default on purpose in hopes that the platforms they owed money to would fail and relieve them of having to repay their debt.

With rising awareness of credit risks, more institutions have begun to share information on blacklisted borrowers, and some local governments have also opened databases for online lenders to check borrowers' credit.

"Theoretically, having independent blacklists and separate risk management capacities should be a company's core competitiveness, but in China the case is different," Li Chao, an analyst at Beijing consultancy iResearch, told the Global Times on Wednesday.

"China has simply too many such platforms and many of them are too small to maintain a reasonable blacklist," Li said. "To have a public blacklist will be useful for these platforms amid an industry reshuffle."

In the first 10 months of 2018, a total of 544 P2P firms reported business failures and fraud, according to wdzj.com in November.


Newspaper headline: Male borrowers have more P2P defaults than females


Posted in: INDUSTRIES

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