Banking On Technology: What Are The Risks?

July 02, 2002 | BY

clpstaff &clp articles

Baker & McKenzieBanks and other financial institutions have been more concerned about computer network security issues than some industry sectors that…

Baker & McKenzie

Banks and other financial institutions have been more concerned about computer network security issues than some industry sectors that have embraced automation more fully. Consequently, several legal commentators were a little surprised that the new Provisions Relevant to the Implementation of the Circular (the Circular)1 issued by the People's Bank of China (PBOC) on April 23 2002 failed to provide specific standards for network security.

The provision of online banking services in China has been spearheaded by a number of domestic banks. Several foreign banks are waiting for PBOC approval to offer similar services. Aside from internet banking, foreign banks are beginning to see China as a viable location to house back office functions such as data and transaction processing for their worldwide operations. In June for example, HSBC announced the opening of its second data processing centre in China.

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