The Research Of The Legal Issues In Risk Supervision Of Online Banking In China

The application of the internet technology to banking business in the 90s gave birth to Online Banking. After a few years of development, the scale of Online Banking has achieved a boom. Meanwhile, the application of the new technology has successfully made the banking business ride on the road of transitions. As a freshly born concept, the limitations and constraints to Online Banking lack of proper management, and therefore some legal problems are created in correspondence. How to deal with such problems according to related law would then become the question that needs to be answered immediately. As a financial institute which depends on high technology, there are many characteristics, such as the virtual way of service, the opening of operation environment and the unlimited space and way of operation itself, compared to traditional banking business. These characteristics determine the huge advantages of Online Banking, for example, convenience, swiftness and low costs. However, we should also pay attention to the potential risks, which would be complicated and diversified, would occur. Such risks the Online Banking could face include security, technical choices, operations, tactical, market signals, credit, volatility, and legal issues. In correspondence, the related laws such as The Chinese Electronic Signature and The Management of Online Banking Business could not cover those issues all, and therefore bring the regulators more challenges. The construction of new laws and regulations in order to cover the Online Banking business and the risk issues would be essential at this stage. Coping with issues like this, the Basel Banking Committee suggested the principles of managing the Online Banking risks. The foreign legal regulatory systems are formed based on two main models: American and European. Compared with our domestic experience and practice, the incompetence of our regulation of Online Banking is as follows: 1. The massive incompletion in the construction of regulatory systems, 2. The uncertainty in the introduction system of Online Banking to the market, 3. the lack of protection of customers, 4. the lack of Online Banking customers'privacy, 5. no adequate views on legal regulation of Online Banking, 6. the lack of regulation on cross-board Online Banking. Thus, the choice of legislation model would depend on our domestic situations, attending the interests of the consumers, and to be completed continuously.