Banking Legal Environment

Teaching hours and credit allocation: 16 hours, 3 credits

This course aims to provide a detailed and advanced understanding of the latest developments in law and practice relating to the international banking industry. The legal framework of banks will be analysed and it will be shown whether the rights of creditors and contract enforcement have effect on the development of banks. This course also aims to enable students to understand and appreciate the role of the international banking system within the international financial markets and to foster a sophisticated appreciation of the role of the international banking system as the means of payment in international sales. Basic aim of this course is to develop students’ capacity for critical analysis and logical thinking and to encourage independent learning and reflection.

Learning outcomes

On completion of this module, students are expected to 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
  • develop critical understanding of the evolution of the payment system in international sales and to reflect on the forces shaping it
  • understand the contribution of the international banking system in the provision of an essential ingredient¬† in international sale transactions


  • 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
  • Establishment and expansion of banks
  • Banking consolidation and related EU directives
  • Introduction to banking regulation: Objectives and principles. Instruments and Requirements
  • Different aspects of the contract 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
  • Payment and payment systems, including the nature of payment, electronic funds transfer and electronic money
  • Property as security. Checks and other payment instruments
  • The role of the European Ombudsman
  • Banking development
  • Private Banking Law
  • Money laundering and anti-terrorist financing
  • Interrelation of banking legal environment and economic growth, capital accumulation and productivity growth