# Peer-to-peer lending (also referred to in German as P2P lending, often also spelled collaborative finance and sometimes partnership-based fundraising)

- Canonical URL: https://www.gerhardmerk.de/peer-to-peer-lending-also-referred-to-in-german-as-p2p-lending-often-also-spelled-collaborative-finance-and-sometimes-partnership-based-fundraising
- Post ID: 591398
- Modified: 2023-07-25T21:14:31+00:00
- Language: en

## Definition

Private households seeking capital apply for loans offered by others, usually via Internet portals (lending and borrowing which occurs directly between individuals or peers without the intermediation of a traditional financial institution, usually based on the Internet). - In principle, no permission is required for such intermediation. However, as soon as banking transactions are carried out via the platform in question, a banking supervisory license is required. This is primarily seen in the fact that - certain providers satisfy such loan requests on a commercial basis (which is frequently the case) or - private customers invest the money raised in this way on a commercial basis. - On May 14, 2007, the German Federal Financial Supervisory Authority (BaFin) published a fact sheet entitled "Hinweise zur Erlaubnispflicht der Betreiber und Nutzer einer internetbasierten Kreditvermittlungsplattform nach dem KWG" (Information on the obligation to obtain a license for operators and users of an Internet-based credit brokerage platform under the German Banking Act). - See banking license, Bönhase, crowdfunding, eLolly, credit intermediation platform, shadow banking, social lending platform, underground banking. - Cf. BaFin Annual Report 2006, p. 198 (observation of this market by BaFin), BaFin Annual Report 2007, p. 208 f. (in principle, no licensing requirement). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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