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Basle Committee on Banking Supervision, Risk Management for Electronic Banking and Electronic Money Activities (Mar. 1998) (full-text).


The purpose of this document was to provide considerations for supervisory authorities and banking organizations as they developed methods for identifying, assessing, managing and controlling the risks associated with electronic banking and electronic money.

Electronic payment systems are likely to figure importantly in the development of electronic commerce. At the time of this report, the development and use of electronic banking and electronic money were still in their early stages. While providing new opportunities for banks, electronic banking and electronic money activities carry risks as well as benefits and it is important that these risks are recognized and managed in a prudent manner.

The scope of the report was restricted in two respects. First, it deals with the risk management of electronic banking and electronic money activities from a banking supervisory perspective only and does not, for example, address the monetary consequences. Second, while many of the risks described in the report apply both to bank and non-bank issuers and providers, this report addressed banks only.

The Basle Committee regarded the document as an initial step in an ongoing review and discussion of supervisory issues and responses related to technological advances in electronic retail products and services.