Law of Commercial Banking


Course Description:

This course will focus on the following legal issues: What constitutes commercial banking in contrast to investment banking? Which types of transactions are typically considered "commercial banking"? The trends in banking regulation moving from a narrow focus to a broader model of general, financial services supervision. The legal relationship between a bank and its customers, such as contract formation, general terms and conditions, and boiler plate language in general. Basic forms of loan agreements. Standard Euro loan documentation. The function of security, types available, their purposes and limitations. Funds transfer and payment systems. Risk management and the impact of Basle II and capital adequacy requirements. Some of these issues will inevitably be addressed in other classes as well, but different contexts and detail. This provides the opportunity to recap substantive issues. The goal is to gain a true understanding of concepts as opposed to a detailed knowledge of legal rules.


  1. Introduction
  2. Liabilities-Side of Balance Sheet
  3. Asset-Side of Balance Sheet
  4. Euro Loan, I, II, III
  5. Types of Credit
  6. Security, I, II
  7. Funds Transfer
  8. Regulatory
  9. All about Risk
  10. Further Materials

Credit Points:



Andreas Ruthemeyer

Module Supervisor:

Prof. Dr. Andreas Cahn