Module Details

LW224-6-SP-CO: Banking Law

Year: 2017/18
Department: Law (School of)
Essex credit: 15
ECTS credit: 7.5
Available to Study Abroad / Exchange Students: Yes
Full Year Module Available to Study Abroad / Exchange Students for a Single Term: No
Outside Option: No
Pre-requisites: LW101

Supervisor: Professor Agasha Mugasha
Teaching Staff: Professor Agasha Mugasha
Contact details: Law General Office, 01206 872529,

Module is taught during the following terms
Autumn Spring Summer

Module Description

The module deals with banking regulation and the bank – customer relationship. The first part introduces banks as important economic and social institutions and their regulation in a domestic and global context. The second part focuses on some key services commonly provided by banks in the course of the bank – customer relationship and analyses some attendant legal issues such as contractual fairness, the bank's duty of confidentiality, and the potential for transactional and advisory liability. The module adopts a dynamic approach that balances theoretical perspectives, legal policy and the principles contained in statutes, cases and commercial custom. It does not assume any prior knowledge of banking practice, but it does expect that students will quickly develop a keen interest in financial institutions and markets.

Aims and Objectives

The module seeks to:

* introduce banks, banking law and the business of banking;
* give students detailed knowledge about the institutions involved in banking regulation and supervision in the United Kingdom;
* introduce the key banking transactions and their legal implications;
* enable students appreciate the political, social and economic forces underlying the dynamism and evolution of the financial industry and attempts to regulate the resulting processes; and
* equip students with the analytical tools for analysing domestic banking transactions and applying relevant law.

Learning and Teaching Methods

The module is based predominantly on the lecture method and classroom participation is highly encouraged. Students will generally be expected to have some basic familiarity with the work to be covered in the next lecture so that they can meaningfully participate in the lecture. Towards the end of term there will be a class discussion of one or two questions from previous examinations so as to clarify expectations in the summer examination.

Learning outcomes

By the end of the module students will be able to:

* apply the knowledge and techniques that they have learned to review, consolidate and extend their understanding of the legal regulation of the banking industry and the bank customer relationship in the UK;
* critically evaluate arguments, legal issues and practical situations, and to frame appropriate questions to achieve a solution to the main issues arising in the banking services sector;
* communicate information, ideas, problems and solutions concerning banking regulation and the banker customer relationship to both specialist and non-specialist audiences; and
* appreciate the uncertainty and ambiguity about the boundaries of banking services vis-a-vis the wider financial industry.

1. Introduction to banks and banking services
2. Discovering the 'business of banking'
3. The development of the multi-functional and international bank
4. Legal regulation of banking
5. Introduction to bank-customer contracts
6. Bank as lender: rights of set-off and liens – Not examinable
7. The regulation of bank - customer contracts.
8. Bank's duty of care and bank's transactional liability
9. Bank as constructive trustee
10. Banks' obligations: duty of confidentiality


100 per cent Exam Mark

Exam Duration and Period

2:30 during Summer Examination period.


  • Anu Arora, Banking Law, 2014
  • LS Sealy and RJA Hooley, Commercial Law: Text Cases and Materials 4th edition 2008
  • R Cranston, Principles of Banking Law, 2nd edition 2002
  • P Ellinger, Lomnicka & Hare, Ellinger's Modern Banking Law, 5th edition 2011

Further information

External Examiner Information

  • Name: Dr Ebeneezer Adodo
    Institution: The University of Leicester
    Academic Role: Associate Professor of Commercial Law