Issues in Electronic Banking: An Overview
IMF Policy Discussion Papers, March 1, 2002
Source details
- Canonical URL
- Issues in Electronic Banking: An Overview
Other formats
Bibliographic details
- Authors: Andrea Schaechter
- Published: March 1, 2002
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451972177.003
Summary
- Author: Andrea Schaechter
- Publication date: March 1, 2002
- This paper provides an overview of issues resulting from the development of electronic banking and how they are currently being addressed by regulatory and supervisory authorities.
- Electronic banking enables offering banking services around the world 24 hours a day.
- The dependence on technology for providing services with the necessary security, and the cross-border nature of transactions, involve additional risks for banks and new challenges for banking regulators and supervisors.
Major issues and risks identified
- Dependence on technology for service delivery and security.
- Cross-border nature of transactions creating supervisory and regulatory challenges.
- Operational risk arising from electronic delivery channels.
- Reputational risk linked to electronic banking failures or breaches.
- Money laundering concerns in electronic channels.
- Exchange rate risk associated with global electronic transactions.
- Implications for banking regulation and banking supervision.
- Customer relationship and customer protection challenges in e-banking contexts.
- Emergence of virtual bank and Internet banking models versus traditional "mortar bank" structures.
Focus of the paper
- Provides an overview rather than prescriptive rules.
- Describes how regulatory and supervisory authorities are currently addressing the identified issues.
- Emphasizes the global nature of electronic banking and the cross-cutting policy areas: Banking, Crime, Exchange rate risk, Financial institutions, Financial regulation and supervision, Money laundering, Operational risk, Reputational risk, Securities.
Content in this bundle
- Issues in Electronic Banking: An Overview - PDP/02/6