Study On Supervision Of Internet Bank In China

Internet bank is a new typical bank service through information technology and Internet. The management modes, management concepts and management costs of traditional banks will be challenged because of the characters of internet bank, which include on-line, real-time and right-now. China has now entered WTO. According to WTO's rules in financial fields, the business for the foreign banks in china will be better in the near future. Although China's banks possess absolute advantages in the areas of the supports of governmental policies and branch setup, the foreign banks are still stronger than China's banks in many areas such as marketing operation, profit capability and financial risks absorption. The service code of the internet bank will be the first choice to the foreign banks because of a lot of advantages for internet bank such as lower costs, no branches etc. On the basis of the analysis of internet bank's history, characters and differences with traditional banks, by means of the comparative research abroad and at home, the article concludes that the central bank's monetary policies may tend to be invalid because of the flow of electronic money using practical analysis. On premise of comparing the international experiences with our country's situations, the article offers some measures of establishing the supervision system of the central bank to internet bank in China.