Banking law governs the relationship between banks and their customers. It also regulates the banking system as a whole. This field of law is vast and includes several different applications. Here are some of the most common:

Contract law

Banking law governs the formation and enforcement of contracts between banks and their customers. For example, it dictates when a bank can terminate a customer’s account and what notice must be given. It also specifies what forms of money are accepted for payment.

Consumer protection law

Banks are often in a position of power over their customers. For this reason, banking law is sometimes used to protect consumers from unfair or fraudulent practices by financial institutions. Intellectual property law Banking laws may be invoked when intellectual property rights are infringed upon by unauthorized use of accounts, computer programs, etc.

Competition law 

Laws that prevent monopolies and encourage competition to limit a bank’s right to conduct business. These regulations determine how banks can offer products and services within specific markets, e.g., interest rates on loans offered to small businesses. Banking laws also cover the extent to which one bank may advertise its products in another bank’s geographic area.


Banks can be held liable for several torts, such as negligence or fraud. For example, if a bank makes an unauthorized transfer from a customer’s account, the customer may sue for damages. Securities law Banking laws are closely related to securities law. The latter governs the buying, selling, and trading of financial instruments, including stocks and bonds.

Law of electronic banking

Electronic banking consists of computers, telecommunications equipment, and other devices to transfer money between accounts at different institutions. This form of banking has grown exponentially during the past 25 years. Banking law protects consumers and service providers in this environment, e.g., by establishing security standards for online transactions and regulating the remaining paper-based transactions still prevalent.

International banking

This area of banking law deals with the cross-border activities of banks. It covers foreign exchange controls, the extension of credit across borders, and the protection of internationally held deposits. As a banking lawyer, you could work in a bank’s legal department or the legal department of a financial regulator. You might also choose to specialize in a particular area of banking law, such as consumer protection or securities law. Or you could work in private practice, advising banks and their customers on contract and tort disputes. Whatever your chosen path, a background in banking law will serve you well, like Robin Stoby.


There are many tax implications for banks and their customers related to banking law. For example, interest earned on certain savings accounts may be taxed differently than other income sources. However, banking law provides exemptions for certain types of accounts. For instance, interest earned on a Registered Retirement Savings Plan (RRSP) is exempt from tax until funds are withdrawn from the account. In addition, the bank’s right to collect tax is regulated by banking law.

Products in another Jurisdiction

Finally, banking law is an important tool for governments to regulate the financial sector and protect consumers. It governs a bank’s activities domestically, as well as internationally. This includes the products and services a bank can offer, how it can market them, and the terms and conditions of any agreements. Banking law also ensures that consumers are treated fairly and understand the risks associated with banking products.

Banking law is a complex field that intersects with many areas of public policy. In addition to these examples, banking laws affect the economy in different ways, including shaping the availability of credit and encouraging or discouraging economic growth. This makes banking law an important area for governments to understand when developing economic policies related to taxation, infrastructure investment.

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