Belated PRC Online Banking Regulations Welcomed By Financial Services Sector
September 02, 2001 | BY
clpstaff &clp articlesOnline Banking regulations have recently been promulgated to China's banking laws, but there remains uncertainties to online privacy issues, foreign banks and other applicability of the provisions.
Belated PRC Online Banking Regulations Welcomed By Financial Services Sector
Recently promulgated regulations governing online banking are a welcome addition to China's banking laws, but it remains to be seen how the regulations will play out. Online privacy issues, the role of foreign banks and ambiguity on whether the regulations apply to mobile phone or other telecom users are some of the obstacles to online banking.
As a further attempt to regulate its financial service sector and to protect the interests of consumers, the People's Bank of China (PBOC), the PRC central bank, issued the Tentative Administrative Measures on Online Banking Business (the Online Banking Measures) on July 9 2001, effective immediately upon promulgation.
The promulgation of the Online Banking Measures has been long awaited. Since the mid 1990s, some Chinese banks have offered online banking services to their customers, mostly state enterprises and institutions, in large cities. Some banks also began to team up with telecommunications service providers to jointly launch business-to-consumer online banking systems. While overseas financial service providers see that online banking is a critical segment of the growth of e-commerce in China, due to the lack of regulation they have mainly been doing initial preparations for the establishment of online banking businesses in the PRC.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now