International Banking Law

Module code: LW7116

Module co-ordinator: Mark Hsiao

Module Outline 

International Banking will examine the law relating to business banker-customer relationships. In particular the course will focus on the content of the banking contract and the relationship between banker and customer when a bank account is opened in particular the respective rights and duties of both parties. Such issues as whether the bank is under any duty to advise customers on the merits and risks of transactions and what happens if information and advice is given the transaction causes the customer loss or damage. The loan process will be examined in some detail with a focus on the operation of syndicated loans by a group of banks in relation to large scale projects such as dams, refineries, power stations etc. There will be analysis of what protections banks build into such contracts to protect themselves if the project does not go well or the borrower has difficulty in meeting the repayments.

In addition the issue of whether banks should accept any responsibilities in respect of adverse environmental impacts that a borrower's activities may have - should banks lend on environmentally harmful projects - in this connection the industry's self-regulatory code - the Equator Principles - will be looked at. Finally there will be a discussion of the main forms of security that a bank may require the borrower or third party surety to provide in case the borrower is unable to repay the whole or part of the law. This course will not examine the public regulation of banks by bodies such as the European Central Bank or the UK Prudential Regulatory Authority but focus on the private law relationships created by banking contracts and the tort (civil wrongs) of professional negligence and fraud.

Teaching and Learning Methods

Lectures, workshops, autonomous learning groups, and private study.  Use will be made of the Blackboard VLE to support learning in this module.

Assessment Methods

There will be a choice of questions for the summative assessment.  The word limit will be a maximum of 5,000 words, including footnotes. The emphasis on marking will be on research, understanding and analysis.