De Roure, Calebe;
Pelizzon, Loriana;
Tasca, Paolo;
(2016)
How does P2P lending fit into the consumer credit market? (Discussion Paper. Deutsche Bundesbank 30/2016).
[Digital scholarly resource].
https://www.bundesbank.de/en/publications/research...
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Abstract
Why do retail consumers look for P2P financial intermediation? Are internet-based peer-to-peer (P2P) loans a substitute for or a complement to bank loans? In this study we answer these questions by comparing P2P lending with the non-construction consumer credit market in Germany. We show that P2P lending is servicing a slice of the consumer credit market neglected by banks, namely high-risk and small-sized loans. Nevertheless, when accounting for the risk differential, interest rates are very similar. Our conclusion is that P2P lending is substituting the banking sector for high-risk consumer loans since banks are unwilling or unable to supply this slice of the market. Our study serves to show where the institutionalization of credit provision has left a slice of the market unsupplied.
| Type: | Digital scholarly resource |
|---|---|
| Title: | How does P2P lending fit into the consumer credit market? (Discussion Paper. Deutsche Bundesbank 30/2016) |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | https://www.bundesbank.de/en/publications/research... |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Computer Science |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10179997 |
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