Core Banking - Dec 9, 2016

Given that many self-described P2P lenders are operating on business models reminiscent of securitized lenders during the financial crises (many are even structured as SPVs), their growth makes it inevitable that they should face greater regulation. A combination of microprudential (credit risk), macroprudential (systemic risk), and operational (fraud and technlogical risk) controls are necessary to separate the genuine innovators for the regulatory arbitrageurs.