Banking Law

Banking Law - or Bank Regulation is a form of government regulation or control over the banking sector that subjects the banks to certain specific requirements, restrictions and/or guidelines. This regulatory framework ensures that there is transparency and a consistency of lawful transaction between banks and other financial institutions and their customers, whether they are private individuals or other commercial organisations.

This regulation or control over the banking sector is considered necessary because of the inter-relationship between international financial institutions and their importance to the global economy and well-being of individual national economies. The prime objectives of banking law/regulation are to maintain stability, reduce systemic risk taking, protect depositors, avoid criminal use of the banks, protect confidentiality, ensure confidence in and the integrity of, the banking sector, and manage credit allocation. A vital element of banking regulation is the supervision of the banking sector.

Banking supervision in different countries is characterized by a high degree of uniqueness, resulting from the specific relationship between the relevant national economy and its banking industry. However, supervisory authorities in each country tend to have common goals, related to ensuring the availability of reliable and well-managed banks.

Regulation in general, and supervision specifically are also important in detecting emerging problems within the banking and financial sectors so that appropriate measures can be adopted to prevent or limit adverse affects for the banks and economy as a whole.

Banking Law Specialists