Resarch On The Innovation Of Supervision On The Internet Bank In China

In October of 1995,the first American online bank——“Security First Network Bank” set up,ensued with other banks announcing their online banking service.After 20 years development and upgrade,the internet banking has become a basic service for commercial banks.China's internet banking started in 1996.It went not well at first but rapidly grow after year of 2000 with every commercial banks providing internet banking service in succession.With the high speed development of internet platform,internet banking also grows fast.In 2011,online payment is one of the most important payments because of the fast growing of e-commerce.Banks innovate their online banking service,providing more convenient and personalized products in order to control more market shares and get higher market position.Nevertheless,the regulation for online banking is being lagged,in comparison with the high growing speed.Online banking has its specific issue of security and risk as it's distinct from traditional banking service.This is a trouble which we need to deal with.And the relevant regulation should be enforced accordingly.So analyzing the status of the internet banking as well as making efficient suggestions has its necessity.This paper begins with analyzing the condition of development and regulation of domestic internet banking,pointing out regulation loopholes and deficiencies such as the imperfection of regulation legal system,the fall behind of means for regulation,bad coordination between department and lack of information disclosure system.At the last two section of the dissertation,I give advice on perfecting China's internet banking services considering advanced experience abroad.By practicing it,I believe we could not only control business risk but more significantly prompt the healthy development of internet banking.With qualitative and quantitative analysis,the result of this study is as follows:1.Risks of network bank are increasing.The main risks are as follows: Firstly,the absence of network banks supervision.Secondly,lag in consciousness of internet banks' supervision.Thirdly,the fragility of human resource.Fourthly,hysteresis in law and rules and measures of supervision of internet banking.Fifthly,serious lag in social supervision environment.2.Huge difficulty in supervision exists in the internet banking.Firstly,online banking brings new features of risks.It's a big challenge for the traditional bank to identify this sorts of risks.Secondly,the traditional regulatory approach will fail to increase the internal control system of banking institutions regulatory requirements.Thirdly,existing regulatory means failure.Articles built SOMEI analysis paradigm online banking supervision system,namely the regulatory body “S”(subject),the regulatory object “O”(object),regulatory means “M”(means and methods),environmental factors “E”(environment),information structure “I”(information structure)analysis paradigm.Each of these five aspects of online banking regulators to analyze the problems.Doing so makes the question of regulation is clear.In the final chapter of the article,the policy proposals put forward our online banking risk governance model built from the macro and micro levels.