China Regulates On-Line BankingThe People's Bank of China (PBOC), China's central bank, Monday launched a provisional method for regulating on-line banking.A spokesman for the PBOC said that the new method aims to standardize and guide the healthy development of China's on-line banking business, prevent banking business risks and protect clients' legal rights and interests. On-line banking businesses refer to financial services offered via the Internet. The central bank is in charge of supervising banks' on-line businesses; any banking institution must get the central bank's permission before opening on-line banking business. The spokesman said that policy-oriented banks, domestic commercial banks, joint-venture banks, foreign-funded banks and branches of foreign banks must apply to the PBOC headquarters before opening on-line banking businesses, while city commercial banks need to be approved by local branches of the PBOC. The method required that banks conducting on-line business must abide by State laws and regulations, and should have adequate security measures. The method also stipulated qualifications for banks to open on-line businesses and named legal responsibilities. |
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