From One Crisis to Another: Impact of COVID-19 Pandemic on Peer-to-Peer Lending Market

Asror Nigmonov and Hussein Daradkeh

Chapter 13 in Financial Transformations Beyond the COVID-19 Health Crisis, 2022, pp 363-402 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter empirically examines the liquidity risk experienced by peer-to-peer (P2P) lending market during the COVID-19 pandemic. This study utilizes time series and survival regression analyses to provide early evidence of the pandemic-induced exposure to liquidity risk in the P2P lending market. We use the daily number of listings and the probability of success in Bondora’s secondary market as continuous dependent variables. The findings indicate that the secondary market listings substantially increased around the early days of the pandemic. Using the method of survival analysis, we also find that, despite increased volatility, the probability of successful listing increased during the pandemic period. Our findings improve the current risk management models and security mechanisms used by P2P lending platforms. However, the findings of this chapter should be used with caution because of the limitations imposed by third parties and rapid changes occurring in the industry.

Keywords: COVID19; Pandemic; Pandemic Outbreak; Health Crisis; Economics; Macroeconomics; Finance; Sustainable Finance; Financial Crisis; Financial Integration; Economic Integration; Global Financial Crisis; Financial Institutions; Corporate Finance; Corporate Governance; Board of Directors; ESG; Corporate Social Responsibility; Sustainable Finance; Stock Markets; Financial Markets; Stock Market Behaviour; Firm Liquidity; Emerging Markets; China; Financial Institutions; Money; Banks; Banking System; Banking Sector; Business Groups; Resilience; Safe Heaven; Gold; Oil; Peer-to-Peer Lending Market; Foreign Trading; Stock Market Volatility; Extreme Events (search for similar items in EconPapers)
JEL-codes: F4 F62 G15 G17 G3 O16 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781800610781_0013 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781800610781_0013 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9781800610781_0013

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().