Internet Banking Legal And Regulatory Issues Explored

After entering the1990s, with the rapid development of information technology,the traditional banking business has changed with the development of technology, thetraditional banking business simply can not meet the current business needs. With thegrowing popularity of electronic information technology, financial institutions and e-business networks combined in order to achieve our current understanding of moderne-commerce.Modern banking through a combination of e-commerce and traditional banks havebeen full development, the United States in1995and became the first Internet bank,after10years, the online banking unique cost-effective in the world, has been the rapiddevelopment, this change is not only the traditional banking business has brought ahuge change, but also a profound transformation of financial institutions, onlinebanking has become an important part of financial institutions indispensableInternet banking has many traditional banks incomparable superiority, butbecause of the risk appetite of online banking, online banking must be effectivesupervision. The main risks of online banking is not just from their own internal riskarising from operational techniques, including external environment brought about aseries of problems.Internet Banking breach or non-compliance with relevant laws, regulations, rules,practices and industry standards, regulations or no improvement in the rights andobligations of the parties under the law may give the bank cause legal risk;addition,because the traditional law of internet banking lack of standardized or traditionalbanking existing legal norms and network operational requirements conflict will leadto legal risks.China wants to change the online banking institution type regulatory system, thetransition to the functional regulation, the regulatory body were set according todifferent financial services, the implementation of cross-market and cross-sectorregulation, in the case of mixed financial sector can be set on the financial sector Financial Supervisory Authority implementation of unified supervision, so not onlycan adapt to the requirements of the regulatory regime Mixed on, you can also put anend to the regulatory regime in the institutional administrative means to restrict thepractice of cross-industry financial innovation, to create an environment for thedevelopment of innovative financial industry.China has initially established online banking regulatory system, but there arestill many problems. Therefore, we should take into account for the purpose of safetyand efficiency, and improve the information disclosure online banking supervision andrisk control, strengthening international cooperation online banking supervision. Thetraditional legal theory had a huge impact, but our current approach to use more onlinebanking contractual agreements, there is no specific laws and regulations, in legaltheory needs further exploration of our own about the legal basis for online bankingsupervision. With online banking business without the constraints of time, highefficiency, and to meet the diverse needs of customers, in recent years, the rapiddevelopment of China’s online banking. However, compared with traditional banking,online banking has many risk appetite, difficulty of monitoring the risks attendantincrease. Traditional banking regulatory system can not meet the development needsof online banking, and our regulatory system for online banking is not perfect, soexplore our online banking supervision and sound with a strong practical significance.