Study On The Strategies Of Risk Supervision Over Internet Banking In China

Since mid 1990s, as the rapid development and popularization of information technology and Internet technology, the Internet banking emerges as a new banking format. The Internet banking is a renovation in financial area. It has changed the business management method and operation model of the traditional financial system. It serves the customers beyond space and time, enlarging the financial service areas. Also it lower the service cost of banks and promote their service quality and efficiency. Therefore, Internet banking has developed greatly in a lot of countries after its appearance.Meanwhile Internet banking has its two sides. It not only has the risks that traditional banks have, but also has its special risks, especial technology risks brought by information technology and Internet technology. These risks not only threaten the healthy development of Internet banking and financial market, but also impact the stability of financial system. Therefore, it is a great challenge to financial supervision. In China, the basis of financial market is not strong and financial supervision is not strong enough. Therefore, it is important to make a research on the risk management on Internet banking.This thesis discusses the risks and the supervision on Internet banking with five chapters. The first chapter defines Internet banking, analyzing the background of its emergence and development, its characteristics, business scopes and the current situation. Also it compares the Internet banking to traditional banking. The second chapter points out the risks of Internet banking and analyzes the new features of Internet banking versus traditional banking. Also it discusses the importance of risk management of Internet banking. The third discusses the risk supervision on Internet banking in other countries. The fourth focuses on the risk supervision on Internet banking in China, especially the situation and problems after the Electronic Banking Business Management Rules carried out in 2006. The fifth suggests how to promote the risk supervision on Internet banking in China.