Social lending in Europe: structures, regulation and pricing models

M La Torre, F Mango - Crisis, risk and stability in financial markets, 2012 - Springer
Crisis, risk and stability in financial markets, 2012Springer
… The basic SL pricing model lets borrowers and lenders establish the price of the loan.
The more sophisticated platforms ask for minimum entry requirements and fix a set of … The
aim of this chapter is to analyze the pricing model adopted by the more advanced forms of
SL platform. The analysis focuses on the … The pricing model and the regulatory proposals
suggested in this chapter could represent a first step towards a more sustainable and
transparent European SL marketplace. …
Abstract
Social Lending (SL)1 links borrowers and lenders on website markets, creating virtual financial communities. SL is in fact an alternative credit market that uses website platforms to link borrowers and lenders without the interpolation of traditional financial intermediaries.
Springer
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