Banking Law

The course will cover the following topics:
I. Public banking law: The supervision of the financial system

A. The shaping of modern banking law up to the period of the international financial crisis
1. The legal-political demand for supervision of the banking system
1.1. The financial system and the role of banks
1.2. Forms of regulatory intervention through banking law
1.3. Banking activities
1.4. Financing of Banks
1.5. Interbank financing 2
1.6. Definition of money – Properties and functions of money
1.7. Payment systems
1.8. Clearance and settlement systems for payments and transactions
1.9. Monetary law and the role of the European Central Bank – Monetary policy and the Eurosystem
2. European [Community and EU] banking law
2.1. The evolution of European banking law
2.1.1. The first and second generation of European Banking Directives
2.1.2. The problem with capital transfers and the fundamental principles of the freedom of establishment and the freedom to provide services
2.2. The European passport and its rules of operation
2.3. Minimum harmonization and the home country control principle
2.4. Licensing and supervision of credit institutions
2.5. In depth study of the single financial area
2.5.1. The Financial Services Action Plan 1999 -2007
2.5.2. The proposals of the Lamfalussy Commission
3. The Greek banking system
3.1. The shaping of Greek banking law: from interventionist law to modern banking law
3.2. Historical Background – The impact of the EU financial services law on the shaping of Greek banking law over the last 40 years.
4. The European Central Bank as a monetary authority
B. Banking law after the international financial crisis
1. The international financial crisis, the debt crisis of member states and the impact on banking law – Regulatory developments in the EU and Greece
1.1. Bank insolvency, the risks and how to deal with them
1.2. Financing / recapitalization of banks: Βail in – bail out – the problem of state aid 1.3. The European Commission’s banking announcements
1.4. The BRRD (Bank Recovery and Resolution Directive)
1.5. The European Stability Mechanism (ESM) – The judgment of the European Court of Justice in the Pringle case
2. The financial crisis in Greece
2.1. The reaction of the Greek legislator: Law 4021/2011
2.2. The special liquidation of Greek banks
2.3. The resolution of systemic banks and their recapitalization through the HFSF (Law 3864/2010)
2.4. Law 4335/2015 – The rules for the resolution of credit institutions
2.5. PSI (The exchange of Greek government bonds under the framework of the restructuring of public debt – Law 4050/2012)
3. The European Banking Union / The Shaping of the Single Supervisory Mechanism 3.1. The European Banking Authority as a supervisory authority
3.2. The mechanisms of the institutional framework of the European Banking Union 3.2.1. SSM (Single Supervisory Mechanism)
3.2.2. SRM (Single Resolution Mechanism)
3.2.3. SRB (Single Resolution Board)
4. Monetary policy instruments and the ECB: conventional and unconventional monetary policy instruments

II. Modern Greek banking law

1. The supervision of credit institutions
1.1. The European Central Bank
1.2. The Bank of Greece
1.3. Banking legislation
2. Credit institutions as subjects of banking transactions
3. Rules for the supervision of credit institutions
3.1. The legislative framework and its development
3.1.1. Licensing of credit institutions – Requirements
3.1.2. Initial capital
3.1.3. Management
3.1.4. Major shareholders
3.2. Ongoing obligations of credit institutions
3.3. Micro-prudential supervision of credit institutions and the importance of macro-prudential regulation rules
3.3.1. Micro-prudential supervision rules and the supervisory authority
3.3.2. Minimum capital requirements for credit institutions
3.3.3. Capital buffers
3.3.4. Large financial exposures
3.3.5. Liquidity risk and leverage ratio
4. The problematic handling of non-performing loans
5. Financial institutions and their supervision
5.1. Leasing companies
5.2. Factoring companies
5.3. Credit companies
5.4. Payment institutions
5.5 E-money institutions
5.6. Bureaus de Change
5.7. Loan servicing companies
6. Alternative forms of financing and prudential rules
7. The Hellenic Deposit and Investment Guarantee Fund
8. The Single Resolution Fund

III Private banking law

1. The relationship between public/supervisory financial services law (banking law, capital market law and insurance law) and private law.
1.1. Sources of law of banking transactions
1.2. Supervisory legislation and banking transactions
1.3. Codes of Conduct
1.4. International Uniform Rules
2. The legal relationship between bank and customer
2.1. The contractual nature of the banking transaction
2.2. Fundamental obligations of credit institutions to their customers
2.2.1. Duty of care
2.2.2. Duty of equal treatment
2.2.3. Confidentiality – personal data protection – banking secrecy
2.2.4. Obligation to inform and advise
2.3. Obligations of the customer
2.4. The liability of banks towards their customers
2.5. The application of consumer protection legislation during the conduct of banking operations
2.5.1. Definition of consumer
2.5.2. General Terms and Conditions of transactions and Accession Agreements
3. Banking operations – transactions
3.1. “Passive” banking operations
3.1.1. The acceptance of deposits
3.1.2. Legal characterization of bank deposit
3.1.3 Types of bank deposits
3.1.3.1. Savings deposits
3.1.3.2. Demand deposits
3.1.3.3. Current deposits account
3.1.3.4. Fixed -term deposits
3.1.4. The bank deposit contract and bank accounts
3.1.5. The currency of the deposit
3.1.6. The execution of the deposit agreement
3.1.7. The operation of the deposit contract
3.1.8. Termination of the deposit contract
3.1.9. The joint account
3.1.9.1. Purpose of the regulation
3.1.9.2 Contracting Parties
3.1.9.3 Operation of the Joint Account
3.1.10. Seizure and freezing of bank deposits
3.1.11. Banking secrecy of bank deposits
3.2. Credit contracts
3.2.1. The Bank loans
3.2.2. The provision of credit through a revolving account
3.2.3. Corporate lending through bond loans
3.2.4. Subordinated loans
3.2.5. Restructuring loans
3.2.6. Loans in foreign currency
3.2.7. Consumer loans
3.2.8. Housing loans
3.2.9. Securitization of loans
3.2.10. Financial collateral contracts
3.2.11. Guarantees and commitments
3.3 Other forms of financial transactions
3.3.1. Leasing contracts
3.3.2. Factoring contracts
3.3.3. Forfaiting
3.4 The conduct of payments and the transfer of funds
3.5. The means of payment
4. Bank interest rates and compounding
5. Tort liability of credit institutions
5.1. Joinder of contractual and tort liability
5.2. Establishment of unlawfulness with the breach of statutory provisions
5.3. Breaches of duty of care and safety obligations for transactions