The Research On Legal Regulation Of Operation Risk Of China Internet-Only Bank

Since "Inclusive Finance" was proposed in China,the Department of Banking Custody had made various efforts in deepening the reform of the financial system of China,the start of establishment of Private Banks is one of the efforts.In 2014,WeBank was approved----the first Internet-Only Bank in China,subsequently,MYbank and XWBank were established in2015 and 2016,and the Internet-Only Bank in China began to develop.Security First Network Bank(SFNB)is the first Internet-Only bank in the world,with the establishment and development of SFNB,Internet-Only banking has established and developed in many countries,and the Internet-Only banking is more than 20 years old and has accumulated rich experience.Since Internet-Only banking has the dual properties of Banking and Internet companies,Internet-Only banking has much higher operational risk than traditional commercial banks,since Internet-Only banking is a kind of banks with no experience in development and regulation in China,the operation and supervision of the Internet-Only bank is still in the process of exploration.The high risk,virtual and the transitivity of risk of Internet-Only Banking require a full range of prevention and establish corresponding legal system,however,China's current legislation,supervision system and technique of supervision can not prevent the operation risk of Internet-Only Banking.The author attempts to explore the defects and the direction of reform of legal regulation of the operation risk of Internet-Only Banking,through the analysis of the Internet-Only Banking,the operation risk of Internet-Only Banking and the current situation of the legal regulation of the operational risk of the Internet-Only Banking in China.First of all,this article expounds the background and significance of the research,list the research contents and the method of this paper,and reviews the research of the topic,and summarizes the innovation and shortcomings of this paper.Secondly,it clarifies the basic elements of the article through analyzing the connotation,characteristics,operation risk and the necessity of legal regulation of the Internet-Only Banking.Then,integrating the basic situation of the three Internet-Only Banks in China,and analyzing the strengths,weaknesses,opportunities and threats of the Internet-Only Banking in China through SWOT model to summarize the defects and the direction of reform of legal regulation of the prevention of operation risk of Internet-Only Banking.Finally,summarizing the experience of legalregulation of operation risk of the United States,European and Japan to find inspirations that suit the actual situation of the development of the Internet-Only Banking in China,then put forward specific suggestions of how to reform the legal regulation of the Internet-Only Bank in China according to inspirations and defects.This paper is based on the reality of the continuous development of the Internet-Only Banks and the defect of the legal regulation of the operation risk,which considering the international experience and the development of China's financial situation,and aiming for the legal reform path of the operation risk of Internet-Only Banking to guarantee the Internet-Only Banking being supervision fully,the operation risk of it can be forbidden under supervision,and the Internet-Only Banking can develop healthily,quickly and safe,and providing endless support for the “Inclusive Finance” and the deepening the reform of the financial system of China.