The P2P Credit Market in Germany

This paper analyses the peer-to-peer credit market in Germany and examines whether crowdlending complements or substitutes traditional bank lending. Using an instrumental-variable approach with Google search data and loan volumes from Auxmoney, the study finds that P2P lending expands credit access to riskier and marginal borrowers while also refinancing some mid-term consumer loans, thereby partially substituting for banks and improving credit allocation efficiency.
.png)
.png)
.png)