Peer-to-Peer Lending in Germany
Journal of European Consumer and Market Law (EuCML), 5 (2016), 224-226
7 Pages Posted: 1 Aug 2018
Date Written: 2016
The supervisory regulation of P2P lending in Germany is very strict. It tends to treat the P2P lending business in largely the same manner as the traditional lending business by banks. From a legal policy perspective, this regulatory approach seems hardly justified as P2P lending without intermediary banks avoids many of the risks associated with the lending business of traditional depositary institutions, which arise out of the maturity, lot size and risk transformation performed by the bank as an intermediary. From a pragmatic, lawyerly perspective P2P lending platforms wanting to be active on the German market have to develop rather sophisticated contracting structure in order to avoid the market entry barriers erected by supervisory legislation.
Keywords: Fintech, P2P Lending, Banking, Peer-to-Peer, Lending, Securities Regulation
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