Banking law

Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines.

The objectives of bank regulation, and the emphasis, vary between jurisdictions. The most common objectives are:

  1. Prudential -- to reduce the level of risk bank creditors are exposed to (i.e. to protect depositors)
  2. Systemic risk reduction -- to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures
  3. Avoid misuse of banks -- to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime
  4. To protect banking confidentiality
  5. Credit allocation -- to direct credit to favored sectors

Andrew Cuomo and Benjamin Lawsky (L)

Who Is Benjamin Lawsky? Little-Known Regulator Who Savaged Standard Chartered Stokes His - And Andrew Cuomo's - Political Dreams

When Benjamin Lawsky formally accused U.K.'s Standard Chartered bank of money laundering and a cover-up linked to Iranian financial institutions, the head of New York's newly formed Department of Financial Services was hardly described in glowing terms in the press. He was termed a rogue, an egomaniac and worse by unnamed scorned colleagues in New York and Washington. But in describing his ambitions, what these reports failed to take into account was the depth of his and Governor Andrew C...
Kansas City Federal Reserve President Hoenig speaks at the American Economic Association Conference in Atlanta

Fed's Hoenig: Big banks too risky, rates too low

Wall Street's financial giants continue to pose major risks to the U.S. economy, and must be broken up to avoid another meltdown, Kansas City Federal Reserve Bank President Thomas Hoenig said on Wednesday.
View of the French BNP Paribas bank headquarters in Paris

International banks suspend Ivorian operations

Two large international banks suspended operations in Ivory Coast on Monday as a power struggle following a disputed presidential election tightened its grip on the economy of the world's top cocoa grower.

Swiss ex-banker faces new probe over WikiLeaks data

Police questioned former banker Rudolf Elmer on Thursday over possible fresh breaches of Swiss bank law for giving data to WikiLeaks this week, a day after he was found guilty of violating bank secrecy.