In this article give you same best introduction about “What is Banking Law and Banking” and related concepts.Before knowing about banking law should know that what the mean of law and what the mean of bank. It can be help to understand the banking law correctly.
The Meaning of Law
When considering simply,Law is a system of rules that govern a society with the intention of maintaining social order, upholding justice and preventing harm to individuals and property.There is no only one correct definition about low. However,various knowledgeable people are define law as various ways.Same of these definitions are as follows.
In The Science of Law (1885) British jurist Sheldon Amos wrote -:
“A law is … a command proceeding from the supreme political authority of a state, and addressed to the persons who are subjects of that authority.”
Harold Joseph Berman wrote in The Interaction of Law and Religion (1974) -:
“Once law is understood as an active, living human process, then it is seen to involve – just as religion involves – man’s whole being, including his dreams, his passions, his ultimate concerns.”
“The principal ways in which law channels and communicates (these) trans-rational values are fourfold. First, through ritual, that is, ceremonial procedures which symbolize the objectivity of law. Second, through tradition, that is, language and practices handed down from the past which symbolize the ongoingness of law. Third, through authority, that is, the reliance upon written or spoken sources of law which are considered to be decisive in themselves and which symbolize the binding power of law. Fourth, through universality, that is, the claim to embody universally valid concepts or insights which symbolize the law’s connection with all embracing truth. These four elements – ritual, tradition, authority and universality – are present in all legal systems, just as they are present in all religions.”
The Meaning of Bank
when considering banking there at lease three ways to define what a bank is. The first one of is ,a bank is able to be defined as its business entity. Normally, a bank is chartered by a federal or state government. The business entity should include the word bank or trust in the name of its business entity.The Second one of is, a bank is able to be defined as the services it offers. Normally, a bank makes loans and accepts deposits .while it may provide other services, makes loans and accepts deposits are its core services.The Third one of is, a bank is able to be defined by its doing economic function. Banks are financial intermediaries that provide transaction services to their customers. Banks allow expertise on transactions, diversification, economies of scale, convert illiquid investments to liquid ones, and a safe place to store money as a financial intermediary.
When considering bank transaction services, It involve an accounting system of exchange which permits transferring wealth through bookkeeping entries and also involves maintaining accounts at the Federal Reserve and also is more efficient than transacting in currencies themselves. These function is unique for banking institution.
What is Banking Law?
Banking law is a part of law dealing with specific principles and institutions. Banking law can be defined as both from the institutional and functional aspects. The functional approach is particularly well suited for defining the content of banking law and distinguishing banking law from other branches of law.Based on whether the banking law concept includes public law rules, the narrow and broad meanings about banking law can be differentiated. Therefore the question of dividing under public or private of banking law. As banking relations primarily constitute the relations between the bank and its client, banking law falls within the domain of private law. However, when considering its broad sense, banking law covers public law rules also.
Banking law is mainly based on definite following principles.These are the main principles.protection of the depositor and investor, transparency, trust, enhanced duty of care of bank officials in dealing with the client’s affairs, recognition of the equality of contractual parties.
When considering present regulatory environment, there is no choice for banks to make compliance a priority.This is able to involve an labor-intensive and expensive process which will affect everyone within the organization.Firstly, the applicable rules and regulations must be correctly identified and ranked it in order of the risk associated with noncompliance.This evaluation by itself will often require input from an attorney familiar with the bank’s operations and the next step will be to design and implement a compliance plan.
Selecting a Banking Law Attorney
If your institution or company is/are looking to avoid regulatory action and the cost associated with it, you want experienced legal counsel. there are many law firms have retired banking executives and government regulators on staff, providing valuable real-world experience. Hence,Contact a banking law attorney to learn more about that.