Banking Legal Environment


Teaching Hours and Credit Allocation: 18 hours, 4 credits
Course Assessment: Coursework



This course aims to provide an understanding of the latest developments in law and practice relating to the banking industry. The legal framework of banks will be analyzed. It will also be shown whether the rights of creditors and contract enforcement have effect on the development of banks. It aims to enable students to identify and understand the principles of law relevant to banking, in order to apply them in practice.


Learning Outcomes

By the end of this course you should be able to:

  • Understand the legal framework of banks and banking regulation in different jurisdictions
  • Understand the issues relating to disputes, contracts, customer service, self-regulation and property
  • Understand the cross-border differences in the legal rights of creditors
  • Realize the connection between banking development and the rights of creditors and the efficiency of contract enforcement



  • Introduction to the legal framework of banks with examples of particular banks
  • Analysis of the Treaty and Relevant Protocols and Declarations regarding the legal framework of the European Central Bank
  • Introduction to banking regulation: Objectives and principles. Instruments and Requirements
  • Different aspects of the contact between banker and customer. The nature of the relationship between banker and customer
  • Legal rights of creditors and contract enforcement in different countries in Europe
  • Property as security. Cheques, means of payment and settlement systems
  • The role of the European Ombudsman
  • Banking development
  • Interrelation of banking legal environment and economic growth, capital accumulation and productivity growth