A spokesman for the PBOC said that the new method aims to standardize and guide the healthy development of China's on-line banking business, prevent banking business risks and protect clients' legal rights and interests.

On-line banking businesses refer to financial services offered via the Internet. The central bank is in charge of supervising banks' on-line businesses; any banking institution must get the central bank's permission before opening on-line banking business.

The spokesman said that policy-oriented banks, domestic commercial banks, joint-venture banks, foreign-funded banks and branches of foreign banks must apply to the PBOC headquarters before opening on-line banking businesses, while city commercial banks need to be approved by local branches of the PBOC.

The method required that banks conducting on-line business must abide by state laws and regulations, and should have adequate security measures.

The method also stipulated qualifications for banks to open on-line businesses and named legal responsibilities.

(People's Daily 07/10/2001)