Banking Laws

Banking law is the broad term for laws that govern how banks and other financial institutions conduct business. Banks must comply with a myriad of federal, state and even local regulations. Lawyers perform a wide variety of functions that relate to creating, following and enforcing regulations.

Banking laws may exist in order to achieve many objectives. Some of these objectives include:

  • Provide transparency for consumers
  • Reduce risk for banking customers
  • Avoid misuse of banks for purposes like money laundering
  • Allow consumers to bank with confidentiality
  • Prevent other crimes
  • Prioritize bank lending according to economic and social priorities
  • Provide fair banking and equal opportunities for banking
  • Prevent terrorism
  • Create fair debt collection practices
  • Make credit card agreements fair to consumers
  • Prevent banks from making unfair loans to insiders like officers and principal shareholders
  • Allow customers to reasonably raise disputes
  • Other goals