Research On The Development And The Risk Supervision Of Internet Banking

Internet banking as a new form of banking came into being with the development of computer network technology and e-commerce in the 20th century in the late 90's. Compared with the traditional banks,intemet banking breakthrough in space-time constraints,so it make the banking business at the counter to an unlimited extension of theory,and greatly reduced the cost of the services of banks.Therefore the Internet banking had been rapid development in the world at its birth ten years after.It also brought in the banking industry in an unprecedented management model and concept of change,At the same time promoted the bank organizational structure and services innovation,but also intensified the competition in the banking sector.However,internet banking is based on the Internet for the public provision of financial services,which enable it expose more complex risk and give the banking sector and financial supervision a greater challenge of risk prevention,in particular, from our country's situation,because our country's financial market infrastructure is weak and financial supervision is not perfect,so if we don't guard against the risk which Internet banking faced,it is possible cause a significant impact on our country's financial markets.Therefore,our country develops the services of Internet banking,at the same time,regulatory agencies must step up the risk supervision of internet banking.In recent years,regulatory agencies how to carry out effective supervision of internet banking has become a social problem,but also become issues financial sector focused on.This article is carried out in this context,and it focused on the development of internet banking and risk monitoring.The full text can be divided into four major parts:PartⅠ:Introduce the background and significance of this article and present the literature review.In this part,first of all,it briefly describes the background and the theory and practical significance of the topics.Then generally introduced the meaning of internet banking,the risks and supervision of the internet banking that had been researched by some scholars.A lot of research results of internet banking greatly help expanded the idea of writing this article.PartⅡ:Research on the development of internet banking.In this part,first of all,it introduced the reasons for the rise of Internet banking,that is,information technology and e-commerce development and increasing competition among banks led to the emergence of internet banking and development.And then give the development of internet banking economic explained by using externality theory and marginal utility theory.Also this is a innovation of my article.Then the paper analyzed the advantages of internet banking and the impact on traditional banking.Finally this article compared the development of domestic and international internet banking,and make China Merchants Bank as an example to show our country's development of Internet banking.PartⅢ:Research on the risks of internet banking.Along with the rapid development of internet banking,the risks of internet banking is increasing.This paper divided the risks of internet banking into technical risks and business risks. Technical risks include the risk of technology selection,system security risk and operational risk.Business risks not only include reputational risk,legal risk,the risk of distraction and outsourcing risk that based on the virtual financial services,but also include credit risk,liquidity risk and market risk that based on the traditional commercial banking business.In this part,we principally analyzed the risks of internet banking one by one.And finally,this article combined with the examples that Security First Network Bank and Wingspan Bank how to close down to reveal the risk of internet banking.Combining with the actual case highlights the risks of internet banking is also one of innovations in this article.PartⅣ:Research on the risk supervision of internet banking.The risks of internet banking became more complex,so it is bound to intensify the difficulty which the financial supervision department should supervise.Therefore,in this part,first of all, we use financial fragility theory and financial market failure theory as the theoretical foundation to research on the need for financial supervision of internet banking.Then present the two models of supervision in the world,that are The United States and Europe.As a lesson from this,we expect it can help improve the supervision of internet banking of our country.Finally,combined with the status of internet bangking supervision of our country to analyze the problem which our country faced,such as inadequate law,weak internal control mechanism,developed credit system,lack of qualified supervisory personnel.For the existence of these problems,we combined with the advanced experience of foreign countries,gived the corresponding solution. These solutions are that improve the laws and regulations of internet banking; strengthen the internal management of internet banking,reduce risk from the internal control system;speed up the credit system construction,set up a unified national credit system;increase the training of the supervisor and improve the overall quality of supervisior.In this article,we conducted a detailed study of the development and risk supervision of internet banking,and combined with the reality of our country to give some suggestions about how to improve the risk supervision of internet banking of our country.However,in the world,how to supervise the internet banking has not formed a unified management model,other countries are still in the discussion stage, therefore,how to effectively supervise the risk of internet banking is also required further study.