Advanced Introduction to Banking Law

Banking Law is subject to a fast pace of change and development. In the past twenty five years alone, for example, one hundred forty regulatory circulars were issued by the Lebanese Central Bank to create a legal framework for the banking activity. This intense regulatory activity and the increasingly frequent intervention of the supervisory authorities have repeatedly rearranged this framework: these circulars were amended no less than four hundred and fifty times during the same period. In addition, the influence of international laws and regulations on the Lebanese banking system has further complicated the shaping of a regulatory policy. As a result, we all remain apprentices of the subject, no matter how long and profound our experience. These characteristics make this section of the Law so fascinating but, sometimes, frustrating. This book is intended to help law professionals resolve this frustration and become more fascinated with the Lebanese banking laws and regulations. Banking Law is a multifaceted area of practice that can be intimidating even to experienced lawyers. The practice of banking law has considerably evolved over the last several years due to intensive legislative and regulatory initiatives undertaken under the auspices of, or in corroboration with, the Lebanese Central Bank. Since 1993, the passing of several laws and regulations created many watchdogs for the banking sector as well as a complex but comprehensive framework to regulate the banking activity. This book provides a general overview of today's system of banking and financial regulations that is unique to the Lebanese market. Banks are particular entities exercising specific types of operations. Students, researchers as well as lawyers representing banks need to understand their client's specific legal and regulatory contexts to serve better their needs. This practical resource gives the reader the essential keys to understand what we refer to in this book as “Banking Law” by extensively answering, among others, the following questions: - How the role of a banking institution has evolved? - What are the characteristics of the existing types of banks? - What are the local regulatory requirements to establish a bank in Lebanon and branches abroad? - How to issue, trade and deal with banks' securities? - What rules apply to online banking activities? - Who are the supervisory authorities of the banking and financial sectors; how are they managed and what are their respective roles? - How do the current laws and regulations protect the interests of the bank's depositors, shareholders and stakeholders? More than 25 years of accumulated legal learning is comprised in this book that will benefit banking law practitioners, researchers and students. In order to comprehensively answer the above mentioned questions, the content of this book is organised into to the following chapters: I. Introduction II. The role of banking institutions III. Types of banks IV. Establishment of a bank in Lebanon V. Banks' securities VI. Branches, representative offices and affiliates VII. E-banking VIII. Banking supervision IX. Main legal and regulatory framework