China Supreme Court Weighs in on P2P Lending13 August, 2015
The China Supreme Court, on August 10th 2015, released a judicial interpretation over P2P lending marketplaces, and their responsibility toward bad loans. According to a report produced by China News, only if a platform has offered a guarantee, would they be forced to take responsibility for the loans.
In other cases, however, peer-to-peer lending platforms are simply intermediaries between borrowers and lenders, and as such are not required to guarantee the loans, therefore ensuring that they will not be held liable for bad loans.
The concept of P2P lending has grown exponentially in China in the past few years, making it the largest peer-to-peer lending market in the world. It remains interesting to see the next steps adopted by the Chinese Supreme Court.
See more at: http://www.crowdfundinsider.com/2015/08/72575-china-supreme-court-weighs-in-on-p2p-lending-liability/
Author: JD Alois - Crowdfund Insider