Study On Legal System Of Supervision About Internet Bank

The world’s first network bank appeared in the USA in the1990s. Since its appearance, it has developed very quickly in many countries of the world. Its emergence makes consumers all over the world enjoy a kind of more efficient and convenient service, at the mean time, it provides environment for the financial field to develop more innovative goods. However, because the Internet bank is a mix of financial innovation and technological innovation, it has some special features, such as virtualness, openness and "AAA", so there are some risks that are very different from those of traditional commercial banks. As it were, Internet bank is a "double-edged sword".Although the network bank has got a rapid development in China, there exist a lot of drawbacks. As a matter of fact, the network bank is still a kind of bank, without changing its industrial feature of high risks. Meanwhile, the network bank has made most use of the technological advantages of the Internet, so there are more risks in terms of technological security. All of these have made the traditional system of supervision not suitable for the burgeoning network banks. Therefore, it’s very necessary to survey the developing state in the financial field and study the legal system of supervision about Internet bank all over the world.Around the world, the Internet bank first appeared in America and has developed quickly and steadily under the effective system of supervision. Similarly, in England, Singapore and Hong Kong, the network banks also develop very well. Studying the aims, constitutions and contents of supervision and current situation of legislation about the network bank, we find their advantages. By comparison, there are many shortcomings in our legal system of supervision. Firstly, our supervision pays much attention to the self-development of network bank, ignoring the protection of interests of consumers. Secondly, the traditional system of supervision can not accommodate the requirements of the development of network bank. Lastly, there are some drawbacks about the regulation of market access, market trading and market exit.On the basis of studying the legal system of supervision about network bank in the other developed countries, the author gives some advices in accordance with the realities of China. Firstly, in terms of the aim of supervision, we lay stress on the protection of the legal interests of clients. Secondly, in terms of the system of supervision, we suggest transiting from institutional supervision to functional supervision. Thirdly, in the way of market access, we are about to narrow the scopes of approval system. Fourthly, as respect to market trading, we emphasize on risk regulation and liquidity supervision. Lastly, in the way of market exit, we establish deposit insurance system.