A Study On Risk Analysis And Management Of Network Bank In China

In recent years, relying on the information technology developed, internet banking has many advantages such as low cost, all-weather, no time and space limitation, and offers global customers convenient, diversified financial services. However, behind the rapid development, there are serious security concerns. These risks are not only from the network of virtual sex, but also from online banking operations within the specific process, and the current immaturity of the external regulatory environment. Therefore, it is necessary to analyze the risk in internet banking and its risk management to identify gaps, propose countermeasures to ensure the long-term and healthy development of internet banking in China.First of all, by the definition of the network banks, business content, compared with the traditional banks, and its overall economic impact of the banking sector as well, summed up the overall development of the network status and special nature of banks. Then, from the specialty of development of internet banking, this paper will analyze its operation possible risks and the causes of various types of risk. The risk can be divided into a security risk, operational risk, credit risk, operational risk, legal risk, and other risks who are the same with the traditional banks. For a targeted study of Chinese internet banking risk management system, and gives coherent countermeasures, the paper should be the reality in China's development, and divide the risk of these six categories into three levels:level of banking operations, financial supervision level and national management level.After a good risk classification, the paper should pay attention to determining the focus of the current risk management problems. Learn from the advanced experience of the United States and Europe, and give the advices about how to strengthen risk management of internet banking on the basis of three levels. In the operational level, make continuous development of advanced information technology to improve network security, and establish and improve the bank's internal risk control mechanism; in financial supervision level, the government should build up a clear regulatory department and make regulatory principles, to develop the appropriate financial regulatory measures; and in national management level, a country should propose the establishment of a sound social information systems, and related laws and regulations of the proposal. Continuous improvement through the three levels of risk control measures in China will benefit for establishing a comprehensive system of risk management system of internet banking.