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Internet Banking And E-money: Internet Financial Theory Analysis

Posted on:2003-04-25Degree:DoctorType:Dissertation
Country:ChinaCandidate:L YinFull Text:PDF
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As result of network technology development and financial innovation, Internet Banking is sign of new type financial organization. Meanwhile, E-money directly induces second fundamental evolution of monetary formation after mint replaced with bank note. The theory of Internet financial service is forming with the development of Internet banking and E-money.According to the implications of internet banking and e-money on financial institute organization, money supple, monetary police, and supervision, this paper can be divided five sectors.SectionⅠintroduces the notion of internet banking and e-money. Since the state about internet banking and electronic money in these papers published in China, most of them think internet banking as another wan to promote bank service and productions, differ obviously from those in U.S. or EU, as the theoretical beginning, it is very important to make the concept clear.As the result of the development of finance informalazition, internet bank is new financial institute that integrate network application and financial innovation. It shows very different characteristics in business organization, management model, structure of asset and liability, compare with traditional banking. The internet banking provides service virtually and operates in open network. Its market space is not localization and operation cost is irrelevance with the distance. From the point of the internet banking characteristics view, the internet banking refer to the bank that provide financial transactional services in open net with real time deal.The e-money refer to electronic pay instrument intermediated transaction by electronic equipment and network with keeping fix exchange rate with fiat. E-money inherit most money characteristics, but compare to fiat it shows very different natural in lots of aspect. For example, Cryptography is commonly used to authenticate messages and devices and to protect the integrity and confidentiality of data, instead of the physical security features applied to cash and other paper-based instruments. As a non-fiat it is inside money that allow person-to-person payments without the intervention by the issuer or another central clearing system. In internet finance, supposing there is no language and the regulation obstacle, will become a global and integrated. The difference of trading time and the instrument are no longer the shackles of the trading. It has significantly changed financial organization and business model, which is focus topic discussed in sector Ⅱ. With the development of internet banking and e-money, the relative information advantage of financial industry has been weakened. The market participant can easilyfind any useful information on the line through the world. The financial experts provide the professional services and up-to-date intelligentized software, which make the information processing easier. Although it is not free to get this information, the cost actually is too low to take into account in the economic analysis framework. All these improve the information structure and the information facility, and broaden the market area.Traditionally, banks were specialized in assets conversion, risk management and the evaluation and monitor of contract. However, now they cannot monopolize the banking business but have to cooperate or share the business with other on-line company, net loan company and discounter. The bank's function is changing too. The settlement function will become the most basic function for the e-bank in the future and also the substructure for the further development. Only first being the payment intermediate for the clients can a bank attract more clients and expand other business field. In order to have better existence, banks have to play a new role in addition to their present functions. First, banks have to be the initiator in building financial infrastructure and providing the financial facilities for the market participants and the economic performance. Second, the banks h...
Keywords/Search Tags:Financial
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