{"id":357972,"date":"2016-04-04T10:46:18","date_gmt":"2016-04-04T15:46:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/hirealawyer\/choosing-the-right-lawyer\/banking-and-finance-law.html"},"modified":"2024-04-16T12:21:43","modified_gmt":"2024-04-16T17:21:43","slug":"banking-and-finance-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/banking-and-finance-law.html","title":{"rendered":"What is Banking and Finance Law?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">What Is Banking and Finance Law?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/susan-buckner-j-d\/\">Susan Buckner, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            April 16, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Banking and finance law governs how lenders, borrowers, and financial institutions conduct transactions and comply with state and federal regulations. Attorneys in this field help businesses and individuals navigate complex financial rules, manage risk, and ensure their transactions meet legal and regulatory standards.<\/p>\n\n    <\/div>\n\n\n\n<p>Banking and finance law covers everything from:<\/p>\n<ul>\n<li>Commercial loans<\/li>\n<li>Taxes and audits<\/li>\n<li>Securities<\/li>\n<li>Stock purchases and investments<\/li>\n<li>Payment of <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/shareholder-rights-and-derivative-actions.html\">derivatives<\/a><\/li>\n<li>Reporting requirements<\/li>\n<li>Mergers and acquisitions<\/li>\n<li>International financial activity<\/li>\n<\/ul>\n<p>State and federal laws regulate nearly all financial transactions. Banks and financial institutions must report all transactions to federal regulators. <a href=\"https:\/\/lawyers.findlaw.com\/banking-finance-law\/\" target=\"_blank\" rel=\"noopener\">Banking lawyers<\/a> help ensure transparency in this reporting.<\/p>\n<p>The contractual relationship between lenders and borrowers is at the heart of banking and finance law. In all financial transactions, the goal is to manage this relationship to meet the parties&#8217; interests. Commercial lending laws affect small businesses when they need <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-financing.html\">startup loans<\/a> and equipment financing.<\/p>\n<p>Keep reading to learn more about this broad legal area and how it shapes financial decisions for both individuals and businesses. You&#8217;ll also find when it may be in your best interest to hire a <a href=\"https:\/\/lawyers.findlaw.com\/banking-finance-law\/\" target=\"_blank\" rel=\"noopener\">banking and finance attorney<\/a> for your legal issue.<\/p>\n<h2>How Does Banking and Finance Law Impact Businesses?<\/h2>\n<p>When <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business.html\">starting a new business<\/a>, many entrepreneurs need legal help with banking and finance law. Many regulations dictate how new businesses must manage investment and private equity funds. New companies often need legal advice to follow corporate finance laws.<\/p>\n<p>Business owners face a wide range of <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations.html\">legal issues<\/a> in their day-to-day business operations. When running a business, banking and finance issues often overlap with issues in other legal areas, such as:<\/p>\n<h3>Commercial Law<\/h3>\n<p>This area of law affects sales of goods and business operations. Mergers and acquisitions are part of commercial law. Buying, selling, or restructuring your business requires the help of a <a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/business-and-commercial-law.html\">commercial law attorney<\/a>.<\/p>\n<h3>Consumer Law<\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/consumer-law.html\">This area of law<\/a> covers everything from debt collection to advertising. You must understand consumer law if your business <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/deciding-to-extend-credit-ten-things-to-think-about.html\">accepts credit cards<\/a>, collects customer data, or advertises sales. Because so much of this law involves handling money, you need an attorney who understands banking and financial services.<\/p>\n<h3>Antitrust<\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/antitrust-and-trade-regulation.html\">Antitrust<\/a>\u00a0is a specialized legal niche covering monopolies and unfair trade practices. Antitrust enforcement also oversees mergers to prevent a company from acquiring too much control of a market sector.<\/p>\n<h3>Intellectual Property<\/h3>\n<p>Fintech, or\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/intellectual-property-law.html\">financial technology<\/a>, is the new buzzword in the financial sector. Fintech was essential in the rise of cryptocurrency and now is an essential part of online financial matters. Anyone considering investing in crypto or other online technology should consult an <a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/intellectual-property-law.html\">intellectual property attorney<\/a>.<\/p>\n<h2>Do I Need a Banking and Finance Lawyer?<\/h2>\n<p>There are many reasons to consult a banking attorney. Banking and finance-related legal issues can affect nearly anyone and every type of business.<\/p>\n<p>For example, financial institutions that fail to follow federal regulations may compromise individuals&#8217; bank accounts. <span style=\"font-size: revert;color: initial\">Small businesses need legal advice when <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-find-commercial-property-to-rent.html\">leasing commercial real estate<\/a>.<\/span><\/p>\n<p>International banking and finance legal issues pose unique problems. Cross-border financial transactions need an extra layer of regulatory compliance and due diligence. The <a href=\"https:\/\/www.federalreserve.gov\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> and FDIC oversee all banking laws on transferring money in and out of the United States. Before investing in overseas markets, consult a <a href=\"https:\/\/lawyers.findlaw.com\/banking-finance-law\/\" target=\"_blank\" rel=\"noopener\">finance attorney<\/a> about these laws.<\/p>\n<h2>How To Find a Finance Lawyer Near You<\/h2>\n<p>A banking and finance attorney can help you explore your options if you or your business has a financial legal issue. Because both federal and state laws are relevant, your attorney should be licensed in your state.<\/p>\n<p>FindLaw&#8217;s directory of <a href=\"https:\/\/lawyers.findlaw.com\/banking-finance-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">banking and finance lawyers<\/a>\u00a0can get you started. Enter your city or ZIP code for a list of qualified legal professionals in your area. Your results will also show ratings and contact information. Many law offices offer free consultations.<\/p>\n<h2>Banking and Finance Terms To Know<\/h2>\n<p>The following terms are often used when discussing banking and finance law.<\/p>\n<ul>\n<li><strong>Equity Investors<\/strong>: Individuals or entities that <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/equity-investors-your-business.html\">buy ownership shares<\/a> in a company in exchange for a stake in its profits and long\u2011term growth<\/li>\n<li><b>Federal Deposit Insurance Corporation (FDIC): <\/b>A <a href=\"https:\/\/www.fdic.gov\/\" target=\"_blank\" rel=\"noopener\">federal agency<\/a> that insures bank accounts against theft or mismanagement<\/li>\n<li><b>International Banking Act of 1978: <\/b>A federal law that placed all U.S.-based branches of international banks under FDIC control<\/li>\n<li><b>Receivership: <\/b>A legal process following a foreclosure or regulatory shutdown. The court appoints an overseer to ensure a bank does not default on its obligations.<\/li>\n<li><b>Securities and Exchange Commission (SEC):<\/b>\u00a0A <a href=\"https:\/\/www.sec.gov\/\" target=\"_blank\" rel=\"noopener\">regulatory agency<\/a> that oversees stock and securities transactions<\/li>\n<li><b>Security: <\/b>A financial asset that insures a debt obligation<\/li>\n<\/ul>\n<h2><span style=\"color: revert;font-size: revert;font-weight: revert\">Related Practice Areas<\/span><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/business-and-commercial-law.html\">Business and Commercial Law<\/a><\/li>\n<li><a href=\"https:\/\/dictionary.findlaw.com\/definition\/taxation.html\" target=\"_blank\" rel=\"noopener\">Taxation Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/securities-law.html\">Securities Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/bankruptcy-law.html\">Bankruptcy Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/consumer-law.html\">Consumer Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/antitrust-and-trade-regulation.html\">Antitrust and Trade Regulation<\/a><\/li>\n<\/ul>\n<p>\u00a0<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              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class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of 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class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    An attorney can advise on fair transactions, legal credit, and other banking and financial matters\n<div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\"><\/div>\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    A lawyer can simplify the process for business contracts, estate planning, and real estate issues\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You may not need a lawyer for routine banking tasks like opening accounts and basic bookkeeping\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<p>Most legal situations can benefit from an attorney\u2019s guidance. 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