The Risk Of E-finance Mechanism And Prevention Strategies Study

As the development of electronic technologies such as computer and internet, finance industry is facing a tremendous changing. The appearance of e-finance enhances the risks of the financial system, and challenges the risk management and supervision of the traditional finance. This requires more researches on the risk formation mechanism from both the theoretic aspect and the demonstrated aspect, and more comprehensive methods for financial risks avoidance.This thesis includes four parts: Part one describes the conception, the developing status and the characteristics of e-finance. Part two puts emphases on the risks of the e-finance, and explains the risk formation mechanism from the characteristics and risk delivery of E-finance on a theoretic aspect. Part three utilizes Chow test and Virtual Variables method to detect the differences of the risks between the traditional finance and e-finance in a demonstrated aspect. Part four works on the methods for preventing the risks of e-finance from both the inner control and the outer supervision.The main conclusions of this thesis are as follows:1. E-finance is a necessity outcome in the era of new technology. It reduces the cost to offer financial services, improves the qualities of financial services, and diversifies the categories. At the same time the appearance of e-finance enhances the competition between different financial organizations and even between financial and non-financial organizations. This competition helps to form a destruction of prices in financial market. And the more important is that the appearance of e-finance has brought many difficulties to avoidance and supervision of special risks in e-finance.2. The risks of e-finance include the same risks in traditional finance, such as credit risk, interest rate risk, market risk, etc. The risks also include special risks in e-finance, such as micro-risks and macro-risks. The micro-risks are divided into to parts: the special operation risks from virtual financial services and the technical risks from digital information system. The macro-risks contain risks from central bank, risks of the efficiency of monetary policy, and the risks of the instability of monetary supply.3. Doing some researches on the risk formation mechanism from the theoretic view. Firstly, explain the increase of financial risks from the characteristics of traditional finance, special characteristics of e-finance, and the characteristics of...