BANKING LAW - 2017/8

Module code: LAWM080

Module provider

School of Law

Module Leader

CHATTERJEE C Prof (Schl of Law)

Number of Credits


ECT Credits



FHEQ Level 7

JACs code


Module cap (Maximum number of students)


Module Availability

Semester 2

Overall student workload

Seminar Hours: 20

Assessment pattern

Assessment type Unit of assessment Weighting
Coursework 3,000 WORD COURSEWORK 100

Alternative Assessment


Prerequisites / Co-requisites


Module overview

This module will be aimed at giving students an insight into the workings of the banking system. It will examine the nature of the risks taken by UK banks and financial institutions, the laws which regulate these risks and the principles and policies underlying these laws. International and European standards which influence and supplement these laws will also be discussed. Students will further examine the private law of banking, i.e. the bank-customer relationship. Topics covered will include the bank as deposit-taker, lender and payment service provider. In addition the course will analyse how the law attempts to halt and prevent potential abuses of the financial system by money launderers and financers of terrorism.

Module aims

The module aims to provide students with an understanding of the issues surrounding risk-taking by banks as well as the standards that have developed with regard to their regulation, their relationships with their customers and the prevention of their use for money laundering and terrorism financing. It will also provide students with an appreciation of the practical realities which have influenced and continue to influence the development of banking law. Students will address such questions as:

What is the nature of traditional banking business?

What roles and functions have banks traditionally performed with respect to the availability and provision of credit?

How has banking business changed in recent years?

What is systemic risk and how does it affect banks?

What is regulation and why should banks be regulated?

Who should regulate banks and how should they be regulated?

What is the nature of banks’ relationship with their customers?

What is the role of banks in the fight against money laundering and terrorism financing?

Learning outcomes

Attributes Developed
Demonstrate a good understanding of the nature of banking business and the role banks perform in the economy; KCPT
Demonstrate a deep awareness of banking risk and what operates to exacerbate and magnify it; KCPT
Critically analyse the way in which banking business has developed in recent years and the impact this has had on the nature and spread of systemic risk; KCPT
Demonstrate a deep understanding of the progress that has been made in the regulation of banks at the national, supranational and international levels. KCPT
Discuss critically the ways in which and the reasons why banking regulation has not been successful in eliminating the risk of systemic failure; KCPT
Demonstrate an ability to critically analyse the nature of the bank-customer relationship; KCPT
Demonstrate a deep understanding of the different services provided by banks and an ability to use them in illustrating how the bank-customer relationship works; KCPT
Discuss critically the role assigned to banks by the law in the fight against money laundering and terrorism financing; KCPT
Apply acquired knowledge to respond to problem scenarios and essay questions. KCPT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Topics discussed will include:

Introduction to Banking, Risk and Regulation
The Financial Safety Net
International Banking Regulation: The Basel Committee on Banking Supervision
Core Principles for Banking Supervision and Capital Adequacy
Bankers’ Training and Risk Study
The definition of “bank” and “customer”
Contracts between banks and customers
The bank’s liability in tort and trust
Payment services
Prevention of the Use of the Financial System for Money Laundering and Terrorism Financing

Methods of Teaching / Learning

10 x 2-hour seminars. The seminars will be interactive and students will be expected to come prepared for the seminar and engage actively in discussions. Students will be provided with preliminary reading references but will be expected to undertake additional independent research into the subject. During seminars students will be expected to demonstrate their ability to apply that research to discuss given legal problems, to demonstrate self-direction and originality in tackling and proposing solutions to such problems, and to evaluate critically research and advanced scholarship in relevant areas.

Students will be provided with oral and written feedback on their progress.

Assessment Strategy

Reading list

Reading list for BANKING LAW :

Programmes this module appears in

Programme Semester Classification Qualifying conditions
International Commercial Law LLM 2 Compulsory A weighted aggregate mark of 50% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.