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The Risk Of Online Banking And Regulatory Research

Posted on:2003-04-06Degree:MasterType:Thesis
Country:ChinaCandidate:L R GuFull Text:PDF
GTID:2206360092986955Subject:International Trade
Abstract/Summary:PDF Full Text Request
The trend of finance globalization, the liberalization of financial supervision and the emergence of financial innovation in the 1990's leads to the intense competition and the high risks in the financial field. The financial industry tries to find ways to enhance competition, improve profitability and reduce risks. Public computer network (mainly Internet) becomes the focus of financial industry. The rapid development of public computer network has led to the emergence of network bank. With the establishment of the first internet-only bank of SFNB on 18th October 1995, a new pattern of provision of finance services has formed. Although network bank emerges just near ten years, it has the epoch-making influence on finance service industry with 300-years-long history. Many countries look upon network bank as the future direction of banking industry owing to its characteristics such as low cost, high profitability and without limits of time and place. Network bank runs in a virtual pattern, so it possesses the broader range of risks than traditional bank. The study of network bank is still in its beginning stage in many countries. Even in USA and some European countries, there doesn't exist formal theories. In China commercial banks just begin to attempt to provide financial services on Internet. Internet-only bank hasn't come into being in China. The lack of concerned law frame and the incomplete knowledge of network bank risks will hinder the further development of network bank in China. After the entry into WTO on 10th, November 2001, sooner or later network bank will become the focus of competition between domestic banks and foreign banks. So the beforehand study of network bank supervision is of vital importance.This article consists of there parts. The main contents of the first part are about the basic theories of network bank. Based on the facts that the formal definition of network bank hasn't shaped, this article try to define network bank on the basis of introduction of existing authorized definitions. Following the definition is the patterns of financial services provided by network bank and its concerned degree of risks. Because the electronic money is the main currency on network bank, thisarticle introduces the electronic money for the completeness of analysis of risk and supervision. Then analyze the distinction between network bank and traditional bank in theory. Based on the above introduction, this article identifies the characteristics and the superiority of network bank. The focus of the second part is the different way in which network bank and traditional bank experience risks. This article formulates the risks facing financial authority and network bank itself respectively and introduces the risk classifications of international organizations. Then this article analyses the reasons why the difficulty of supervision has been enlarged in network bank in theory. Based on the facts that the formal theories on the supervision of network bank risks hasn't formed, this article lays emphasis on the introduction of existing supervision aspects and supervision models. The focus of the third part is on the survey on the supervision of network bank in China. After the introduction of supervision regulations of main countries and international organizations is the formulation of existing supervision situation in China and the problems facing Chinese network banks. Finally, this article puts forward the suggestions on how to formulate supervision policies on the basis of the lessons from other countries and the actual situation in China.
Keywords/Search Tags:Network Bank, Electronic Money, Irrelevance of Physical Location, Risk, Supervision
PDF Full Text Request
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