Learning Banking and Finance Law

Learning Banking and Finance Law

Over the years, the global financial sector has weathered many ups and downs – and this does not just refer to the Global Financial Crisis of 2008. In fact, whether it was the English banking collapses of 1866 and 1878, or the Wall Street crash of 1929, a financial institution in crisis appears often to have had many of the same issues in common.

And unfortunately, people who should have known better playing fast and loose with governance makes a star appearance on every highlights reel. This is something that those involved in law assignment writing on the topic, regularly miss.

Protecting and serving

Adequate checks and balances were either not in place or were disregarded in the pursuit of greater profit. The problem is that when this happens, it is not just inanimate organizations that suffer, it is real people who lose livelihoods – and sometimes even their lives. This is why financial sector regulation is such an important component of a functioning and sustainable banking sector globally.

Banks are the backbone of investment financing, they help facilitate not just the operations of a company and/or economy, but also its ability to self-sustain, expand and acquire. Banks ensure that lending is done responsibly and that the risks attached to the people and assets involved are assessed and adequately protected while doing so.

It’s money, no matter what market

What’s more, no matter where the bank or the company is situated, there are certain international regulatory commonalities and requirements that go beyond just the niceties captured in general. We live and work in a global economy and the accountabilities of formal financial institutions are regulated by a core set of standards.

This is the price of doing business beyond your country’s borders. And in markets where banking regulation and the requisite legalities were not well implemented, to begin with, hard lessons
have been learned, including a complete financial sector breakdown – as in the case of Nigeria not so long ago.

That market has seen a sector reset and is much better off for it, Even better, the key players have recognized the importance of finding and retaining skilled regulatory practitioners to support the banking renaissance. A topic which is now a regular mainstay of African banking.

Partnering for sector sustainability

However, whatever the market, in order to ensure that companies and banks understand what is involved in compliance, there must be access to a deep expertise and understanding of banking law. This is why bankers and lawyers are key partners in investment strategy success. Where bank clients are undertaking large-scale investments in projects or assets, the bank must ensure that any lending decision is made in parallel with the priority to protect the client’s money – and thereby the banks return on the money lent.

This is where banking and finance lawyers form the critical link in the process. Whether they are overseeing a merger and acquisition, or just assisting a client in provisioning for a private equity deal, the importance of their ability to understand local regulation and structure financing deals that maximize tax incentives or minimize regulatory risk, cannot be overstated. They are the custodians of the contracting, drawing up documents and helping the bankers decide on how and when to pay over the money to finance a transaction. This is what you need to know when doing law assignment writing in the professional sector.

Keeping it real

So, while the bankers evaluate the risk and ask hard questions around return, it is the lawyers who serve as the checks and balances, securing the position of the bank, the borrower and the asset. It is the banking and finance lawyer who keeps all parties in line with regulation and puts governance first. In a world where capitalism is king – and corruption ever present – the role of banking and finance law has never been more necessary.