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Licensed Unlicensed Requires Authentication Published by De Gruyter Oldenbourg December 19, 2017

Peer-to-Peer Lending – A (Financial Stability) Risk Perspective

  • Benjamin Käfer EMAIL logo
From the journal Review of Economics


The aim of this survey article is to discuss P2P lending, a subcategory of crowdfunding, from a (financial stability) risk perspective. The discussion focuses on a number of dimensions such as the role of soft information, herding, platform default risk, liquidity risk, and the institutionalization of P2P markets. Overall, we conclude that P2P lending is more risky than traditional banking. However, it is important to recognize that a constant conclusion would be misleading. P2P platforms have evolved and changed their appearance markedly over time, which implies that although our final conclusion of increased riskiness through P2P markets remains valid over time, it is based on different arguments at different points in time.


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Published Online: 2017-12-19
Published in Print: 2018-3-26

© 2018 Oldenbourg Wissenschaftsverlag GmbH, Published by De Gruyter Oldenbourg, Berlin/Boston

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