Research On Third Party Network Payment Risk Assessment And Supervision

In recent years,the internet financial tide swept the whole country,and the internet business has been booming.As a combination of online payment technology and commercial development,network payment has become an emerging industry with rapid development,of which the third party payment provider is the most prominent and flourishing market participants.With China's late start and rapid growth of third party payment providers,this industry faces many problems both for the service providers and the People's Bank of China as primary regulator.Based on the perspective of regulators,this paper treats third party network payment services as the main research object,elaborating on three business models of network payment services,namely,payment gateway,virtual account,and fast payment,which is provided by third party payment companies for purpose of exploring the potential risks of the third party network payment process.Upon applying economic theories on payment and financial risk control theories from the regulatory side to delving into the main risks of third party network payment services,namely,financial risk,compliance risk,credit risk,market risk and technology risk,and analyzing the underlying causes behind the risk: lagging legislation,insufficiency of supervision,absence of credit system and vulnerability of internal control,this paper categorizes five groups of risk supervision indicators including integrated management,reserves management,financial management,business operation and technology information by expert method and the other methods,then subdividing these indicators into 35 as the second level and 126 as the third level risk supervision indicator elements aimed at establishing China's risk supervision and assessment indicator system of third party network payment services.This risk indicator system is hundred-mark system.The significance of each risk level matches corresponding values and weight,namely,A,A-,B,B and C.This paper also details the application of the risk indicator system,culminating in putting forward the effective supervisory measures emphasizing classified supervision to improve the relevance and effectiveness of the risk supervision of China's third party network payment and further healthy development of China's third party payment providers.The detailed measures are as follows: establishing risk assessment indicator system;implementing risk-based classified supervision;improving laws and regulations governing payment service provider;keeping close combination of effective supervision and promotion of development;realizing supervisory coordination of related government departments;strengthening the institutional improvement of payment service providers;introducing external assessment mechanism.Third party network payment service as an emerging industry with fast development,scholars both domestically and abroad do not have systemic study so far on this industry's risk assessment and supervision.The elements of risk assessment indicator system and corresponding weight and value of each indicator still waits to be proven in practice.Data regarding third party network payment service still belong to its company's internal data which have not been released publicly by its owners,and this industry's regulators also have no related regulations in this regard.From the above-mentioned reasons,the scientific nature of establishing risk assessment indicator system needs to be demonstrated by research and practice.