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Banking Law And Regulation
Banking Law And Regulation
Banking law and regulation in the United States of America vary widely. This law in the United States of America may be regulated either at the state level or the federal level.
Banking law and regulation in United states of America is governed by several regulators. The banking law and regulation regulators may be state level regulators or federal level regulators.
There are several laws governing the banking law and regulation.
The different article provides the legal framework of the banking law and regulation.
Articles defining the banking law and regulation:
There are as many as 125 articles defining the banking law.
Articles are many but some of the articles of banking law and regulation is given below:
Article 1 defines the operations, establishment, supervision and termination of operations.
Article 2 provides the different terms their definitions and areas of functioning. The different terms are:
- banks,
- postal banks,
- banking activities,
- deposits,
- affiliated entities,
- supervision,
- subsidiary,
- significant interest,
- capital,
- credit,
- short term security,
- long term security,
- equity holding
- recommendation
- order
- guarantee capital
- measures
- current account
- branch
- representative office
- status changes
- financial institutions
- merger of banks etc.
Article 3 of banking law and regulation clarifies the name of the bank and the conditions of usage of the word "bank"
Article 6 of banking law and regulation states that a bank may be founded by domestic legal entities or foreign legal entities referred to as bank shareholders.
It also denotes that a foreign bank may build a subsidiary.
Article 7 of banking law and regulation states that the conditions under which a bank shareholder may not be subjected to certain legal proceedings.
Article 9 of banking law and regulation is not valid anymore.
Article 10 gives information on the amount of preferential shares.
Article 11 also explains the functioning and operations of shares and how shares would behave under different circumstances.
Article 11 has two parts Article 11-A and article 11.B.
Article 12 of the banking law and regulation suggests that a bank attains a legal entity only after being registered in the Trade Registry.
Banking law and regulation Articles 14 to Article 20 throws light on the founding and operating license of the bank.
Article 21 of the banking law and regulation provides information on the license for change of status.
Article 21 has a sub part 21-a.
Article 25 and article 26 provisions throws light on the law governing the ways of issuing an approval and notifying a bank.
Article 27 denotes law governing the supervisory standards.
Articles 28, 29 and 30 defines banking law and regulation defining solvency and capital adequacy.
Articles 31, 32,33 of the banking law and regulation provisions govern allocation, management,assess,ant and risk identification of the reserves by a bank.
Articles 34 to 39 under the banking law and regulation governs the investment and the credit exposure of the bank.
Bank liquidity is governed by the articles 40,41 and 42 of the banking law and regulation.
Open foreign exchange status is governed by article 43.
Under the banking law and regulation article 44 to 52 governs the financial activities of the bank.
Article 53 governs the security against money laundering.
Articles 55, 56, 57 governs the general meeting of the bank shareholders.
Article 58 and article 59 provisions of banking law and regulation throw light on the
role and functioning of board of directors.
Article 60 of the banking law and regulation provides information on the risk management committee.
Article 61 governs the auditing committee.
Article 62 to article 65 governs the working and composition of the executive body.
Article 66 and article 67 of the banking law and regulation provides information on the internal bank audit department.
Article 68 of the banking law and regulation governs the conditions in the event of a conflict of interest.
Articles 69-76 governs accounting as well as auditing in banks.
Articles 77 to articles article 80 governs the surveillance and supervision of the bank norms.
Banking law and regulation article 81 and article 82 governs the control of the authenticity in the functionings of legal entities and natural persons.
Banking law and regulation article 83 and article 84 governs the business secrets. Article 84 a governs the norms of notification
Article 85 of banking law and regulation governs the guidelines for improving the existing conditions of the bank.
Article 86 is deleted. Article 87 to article 90 governs appointing curator and pre reclamation procedure.
Appointing a receiver and rehabilitation procedure is governed by the article 91 to article 99 of the banking law and regulation.
Bankruptcy legal proceeding are taken care of by the article 100 to article 112 of the banking law and regulation.
Liquidation procedure norms are governed by article 113 to article 116.
Criminal deeds under penalty clauses is governed by article 117, article 117a, article 117b, article 117c, article 118 of the banking law and regulation.
Article 119 to article 121 govern the infraction which a bank is liable to be fined for under the banking law and regulation.
Finally, article 122 to article 125 takes care of the transitional and completion provisions.
Banking regulation may also vary from country to country.
However, majority of the banking law and regulation approach problems in a more or less similar fashion worldwide.
United States of America boasts of one of the highly regulated banking environments in the world.
The different banking law and regulation are summarized below:
Bank regulation:
A:
Prolongation of credit by federal reserve banks:
The above banking law and regulation establishes norms regarding the extension or prolongation of the credits by federal reserve banks.
B:
Equal credit opportunity norms are governed by the above mentioned banking law and regulation.
Equal credit opportunity states that a creditor is suggested to assess a candidate depending on the credit worthiness.
C:
The above mentioned regulation HMDA (home mortgage disclosure act).
The HMDA demands that the financial institutions ought to maintain data and also disclose data every year.
The data should be related to purchase pre approvals, home improvement, home purchases and refinancing.
The above provisions should be having at least 1 to 4 units multiple families living.
D:
Reserve essentials for depository institutions.
E:
Electronic funds transfer act.
F:
Restrictions on interbank indebtednesses.
O:
Loans provided to the insiders.
P:
Privacy of consumer financial information.
Q:
Inhibition Against Payment of Interest on Certain Deposit Account Types.
W:
Transactions between members banks and their associates.
AA:
Unfair or misleading acts or exercises.
BB:
Community reinvestment act.
CC:
Hastened funds availability act.
DD:
Truth in savings act.
The above banking law and regulation usually govern the normal functioning of the banks. Although there may be differences but more or less the same topics or subjects are addresses to with regard to banking law and regulation.
Related Resources:
Affiliated Entities
Subsidiary
Electronic Funds Transfer
Guarantee Capital
Community Reinvestment Act
Truth-In-Savings Act
Home Mortgage Disclosure Act (HMDA)
Keywords:
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