Banking and Monetary Law (Senior Status)

• Credit value: 15 credits at Level 7
• Convenor and tutor: Guido Comparato
• Assessment: a 4000-word essay (100%)

Every penny in your pocket is governed by a complex economic and legal infrastructure meant to ensure money supply, price stability and economic growth. The aim of this module is to introduce you to that legal regime which governs money in our society, focusing on the relation between law, credit and banks.

It will initially introduce the notion of money, discussing its creation, its function in a modern economy and what the role of the law is or should be in relation to it. We will consider national and international monetary law and policy, and subsequently shift the focus on the different types of banks, which perform fundamental functions including settlement of payments, lending and ultimately even creation of money. Such significant functions require a particular attention by law and regulation, as shortcomings of the legal regime are likely to lead to adverse social and economic consequences. We will focus specifically on the regulation of those banking activities addressing both the common law and the statutory provisions concerning relations between banks and customers, deposits, loans, securities, debt restructuring and banking crises.

Indicative module syllabus

• Money, credit-debt and banks
• Monetary policy and central banks
• Supervision and regulation
• The bank-customer relationship
• Deposits and investments
• Lending and consumer credit
• Security and securitisation
• Customers in crisis: consumer over-indebtedness
• Banks in crisis: resolution and insolvency
• Finance, law and society

By the end of this module, you will be able to:

• understand and critically evaluate the principles of monetary law and policy and banking law
• demonstrate skills useful in the legal profession, as well as in business and administration
• recognise the connections between substantive and theoretical issues linked to banking and monetary law
• demonstrate a critical approach to the themes discussed.