A Research On The Risks And Supervision Of Network Banking

In recent years, the construction of financial information and the popularity of the internet enable the network bank in China develop rapidly. The banking is increasingly characterized by its computerization, network and network intelligence. Network banking has become the aim of the reform and development of traditional banking, which offers clients quick, convenient and multiple banking service by means of network technology, and its low-cost, high-profit quality makes all countries consider it the orientation of their banking development in the future. In 2003, the biggest domestic commercial bank-the Industrial and Commercial Bank's volume of trade on the net came to 19 billion, and its network clients amount to 8 million. What network banking increases makes it having a new interest improving to china bank. Though there will be a co-existence of network bank and traditional net-point banking management for a long time, more and more banks in China regard network bank as a commanding height in competition in the same business to talk about the network banking risks and its supervision with the competition.Bring great profits to banking, the innovation of technology also confront banking with various risks. The network banking in China faces the transaction risk, reputation risk and legislate risk as traditional banking does. These risks interfere with the banking operation and make enormous challenge to our existing supervision system. Therefore, we must take advanced study into precautions against the risks for network banking, set-up supervision system suitable for sustainable development, so that we can ensure healthy growth of the network banking. At present, the theoretical study on network banking risks and its supervision system is deficient, and it is quite necessary to study the solutions to these questions. With this background, the writer takes network banking risks and its supervision system as the topic of this thesis.With the genres of the risks and supervising methods defined by BCBS, this thesis makes systematic analysis and discussion on network banking risks and its supervision system, summarizing all kinds of risks network banking faced with, presenting strategies and solutions to constructing supervision system of network banking. The thesis consists of four chapters. The first chapter states the basicconception of network banking in detail, analyzing the causes, characteristics and attributes of network banking, exposing the inevitability of its development, analyzing its influence on traditional banking by comparison and contrast. The second chapter mainly analyzes the current situation, traits and existing problems of the network banking in China, studying the characteristics of the network banking in China by contrasting it to foreign network banking, presenting its developing tendency. The third chapter analyzes all the risks in network banking thoroughly and generalizes the traits of the risks. The forth chapter studies the challenges brought by network banking to traditional supervision system, pointing out the disadvantages in our existing supervision system and presenting solutions to constructing sustainable supervision system of network banking in China.With China joining in WTO, the competition between China banks and foreign banks will be fiercer. Network banking, to a great extent, becomes the criterion of measuring the discrepancy between them. Therefore, it is necessary and important to study the risks network banking faced with, supervision problems, ensure the normal management of network banking and avoid the loss brought by all kinds of risks.