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The Study of the Spuervision of China’s Non-financial Institutions Payment

Author: WangLi
Tutor: QiQun
School: East China University of Political Science
Course: Economic Law
Keywords: Non-finacial institutions payment Supervision of funds Protection of consumers of electronic transactions
CLC: F832.2
Type: Master's thesis
Year: 2011
Downloads: 291
Quote: 1
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Abstract


China’s non-financial institutions payment industry ,because of the fast development of internet and the policies of increasing domestic demand to stimulate economic growth, has been prosperous in recent years, especially the third-party payment industry. As a report from iResearch this year, the turnover of the third-party payment on internet increases fast each year from 2005. And it will increase at 36.3% growth rate in next three years.However, behind the prosperity of non-financial institutions payment industry, there are many controversies. Accroding to China’s Commercial Bank Law and Campany Law, commercial banks are the only ones which can settle accounts. But now the non-financial institutions are doing the similar things, which is full of disputes. Meanwhile, many problems are exposed, for exzample, consumer protection, precipitation funds, credit supervision, money laundering and so on. As a result, the legal supervision of non-financial institutions payment is in urgent need. Especially, the qualification of non-financial institutions, market access, the range of supervision, the registered capital, the supervision of funds in transit and in accounts, liabilities, and consumer protection problems need to be solved at once.Under this circumstance, on June 21th, 2010, Adminstrative Measures on Non-financial Institutions Payment was published by People’Bank of China. Later, Rules for the Implementation of the Adminstrative Measures on Non-financial Institutions Payment was issued as well. Many provisions are containde, for exzample, the qualification of non-financial institutions, market access, the range of supervision, liabilities and so on. Correspondingly, non-financial institutions made quick responses to the publish of this adminstrative measures.Although Adminstrative Measures on Non-financial Institutions Payment plays a very important role in regulation of the payment industry, the adminstrative measures still needs to be perfect. Supervisions are aimed at risk prevention. However, supervision which is too strict can also do harm to the finance innovation and the development of the payment industry.This paper contains four parts, besides introduction and conclusion part. The contents are as follows:The first part introduces the definition and operation of non-financial institutions payment. The precipitation funds will be taken as a exzample, in order to analyze the problems which should be sloved in supervision.In the second part, Adminstrative Measures of non-financial Institutions Payment will be introduced. For exzample, the difintion of the precipitation funds, the supervision from the banks, liabilities and so on.The third part analyzes how the Adminstrative Measures of non-financial Payment makes an influence on the non-financial institutions payment industry, including the positive sides and the negtive sides.The forth part contains both the positive impacts and the negtive impacts of Adminstrative Measures of Non-financial Institutions Payment. Referring to the regulations in the USA and Eruopean conturies ,and the securities law and trust law, advices are made for perfecting the supervision of non-financial institutions payment. For exzample, using the precipitation funds conditionally. The feasibility will also be analyzed.

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CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Banking system and business
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