Banking Law Branch — An Overview

Banking law basics 

Banking law is the branch of commercial law which governs banking operations and determines the rules to be observed.

This legal domain refers to the set of transactions engaged in by banks per se, as well as other financial institutions. It especially involves credit operations such as revolving loans, call and term loans, opening of a line of credit, etc.

The proper practice of banking law requires knowledge of the guarantees that all of these institutions require under their incorporating acts (the federal Bank Act) or other laws.
It is also necessary to master the securities regulated by common law or the Civil Code in Quebec.

Note that banking law is a field that is constantly evolving, and that is subject to provincial, federal or even international reforms, based on economic conditions.

In order to assist institutions, organizations, individuals and corporations, a number of law firms offer their services in a variety of areas:

  • corporate financing
  • project financing
  • public-private partnerships financing
  • asset-based financing
  • real estate financing
  • audiovisual financing
  • privatizations
  • private and public debt securities
  • securitization
  • insolvency
  • collections
  • banking law litigation
  • regulation of financial establishments
  • mergers and acquisitions
  • capital transactions

Related occupations

  • Bank legal officers use their knowledge to prevent all legal risk. They most often work for a bank to monitor compliance with the law in each of its operations (e.g. loan arrangements, contracts, personnel management).
  • Lawyers specializing in banking law advise and/or represent a bank in the event of disputes, collections or disputed claims. They may negotiate on its behalf in the framework of an acquisition or sale, asset disposal, or external investment.

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