The Number of Enterprise Online Bankers Reaches 34 million & the Overall Turnover Surpassed RMB 2 Trillion in China.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c44649 ) has announced the addition of China Online Banking Report 2005-2006 to their offering.

Worldwide rapid development of e-business is resulting in a boom of electronic payment and online transfers in which online banking plays an important role. Electronic money, e-money for short, which was brought together with online banking, provides strong support for electronic payment with its specific online payment functions. As the final executant of electronic payment and balancing, online banks act as a bridge between buyers and sellers, through which the most pivotal factor and highest level in e-business e-payment service is provided.

Three periods exist in online banking development: the first is computer-aided banking management from the 1950s to the late 1980s; the second is electronic banking from the late 1980s to middle of 1990s; the third is online banking from the late 1990s until now.

There are two patterns of online banking: online-only and e-branch. Online-only bank refers to financial institutions that provide saving, inquiry, transfer and other services only online. Such bank widely exists in the USA and Europe. In China, because it is regulated in Temporary Methods of online banking Business Management of Peoples Bank of China (PBC), theres no legal environment for online-only bank. Practically, from the positive attitude of Chinas national commercial banks and consuming habits of clients, theres no commercial space for online-only bank in China.

The present development situation of Chinese banks is that four state-owned commercial banks take the leading position, middle and small commercial banks coexist with joint ventures and service items increasing with the users. According to the data from CBRC (China Banking Regulatory Commission ), Chinas total banking asset was 37 trillion in which ICBC (Industry and Commercial Bank of China ) shared RMB6.4 trillion, ABC (Agricultural Bank of China ) RMB4.8 trillion, BOC (Bank of China )RMB4.7 trillion, and CBC (Construction Bank of China ) RMB4.2 trillion, while other small and middle commercial banks and joint ventures share less than RMB1 trillion, in which CMB (China Merchants Bank ) hold the highest asset of RMB0.7657 trillion.

BOC and CMB started their online banking service in 1998, then ICBC, CBC, BOCOM (Bank of Communications), CEB (China Everbright Bank) and ABC followed. BEA was authorized by PBC to open individual online banking business in Aug 2002. HSBC provided individual online banking service for local and international customers formally in Dec 2002. Citibank was authorized by PBC to provide both enterprise and individual online banking service. From Jan 2004, Hangseng began to provide individual online banking service in Shenzhen, Shanghai, Guangzhou, Fuzhou and other places. User numbers of online banking has increased at a high speed in recent years, especially in developed cities; online banking enjoys a high popularization. Until 2005, there were 740,000 enterprise online banking users and the revenue of enterprise online banking in 2005 was 70 trillion. At the end of 2005, the user number reached 34 million and the overall turnover surpassed RMB 2 trillion.

Until the end of 2005, the number of Chinas netizen has exceeded 100 million and Chinas annual turnover of e-business was more than 0.68 trillion. Huge number of netizen is a guarantee for the development of Chinas online banking while at the same time the large scale of e-business and online banking also mutually promote the development of each other.

Laws and regulations of Chinas online banking are being improved continuously.

Since 1990s, with the worldwide rise of electronic banking, Chinas electronic bank businesses of commercial banks developed rapidly. In order to regulate commercial banks to develop business through the Internet, PBC issued Temporary Methods of Online banking Business Management in June 2001.

The Bill of Electronic Signature has been in enforcement since Apr 1, 2005. Good online credit mechanism and fruitful net transaction channels are thus established, through which the historical lack of law guarantee is ended and the development of e-business and online banking is promoted.

In order to control the risk of electronic banking business, CBRC issued the Electronic Bank Business Management Methods and Electronic Bank security Assessment Direction in late 2005 and early 2006. Both of the two regulations came into effect since Mar 1, 2006.

In early 2006, Hexun introduced an online banking evaluation. 16 Chinese major commercial banks were involved. Through investigating both domestic and overseas individual online banking relative functions, comprehensive evaluations with an excluded index system (consisted of more than 30 indicators and more than 200 items) from three aspects public confidence indicator, platform performance indicator and business performance indicator. ICBC and CMB got the first and second position with exclusive advantage while CIB, CMBC and SPDB performed prominently.

Topics Covered
1 Overview of online banking
2 Development of online banking overseas
3 Development of online banking in China
4 Analysis on development environment of online banking in China
5 Value chain of online banking in China
6 Analysis on representative online bankings in China
7 Evaluation of typical online bankings in China
Selected tables and figures

Companies Mentioned
- ICBC (Industry and Commercial Bank of China)
- ABC (Agricultural Bank of China)
- BOC (Bank of China)
- CBC (Construction Bank of China)
- CMB (China Merchants Bank)
- BOCOM (Bank of Communications)
- CEB (China Everbright Bank)
- Citibank
- GDB (Guangdong Development Bank)
- SDB (Shenzhen Development Bank Co .Ltd)
- BS (Bank of Shanghai)
- BB (Bank of Beijing)

For more information visit http://www.researchandmarkets.com/reports/c44649