Legal Regulation Of The Banking

Each country organizes its financial system dictating the legal rules governing, determining the rights and obligations that are generated in the conduct of that business. Banks do not act in isolation, but coordinated into a system that has its apex at a state authority. This was organized by the National Financial System.

It’s a fundamental principle the idea that each country legally organizes this activity and creates Central Banking systems that monopolizes the issuance of money and regulate credit and payment methods. In many countries this organism also performs monitoring and control of banking and financial system. In others, this task is entrusted to an agency. This power of the banking regulatory exercised by the state is merely the exercise of what has been aptly called “monetary sovereignty”, the expression of an essential base. The currency is the creation of the sovereign, or state.

The law regulating the banking activities in each country usually makes or conceptualized the content of this activity; other times it defines the typical entity that is, to the banks; other opportunities is silent limited to set regulations and articulate the subjects covered in it.

What makes the financial and banking, activity from the legal point of view, is the usual intermediation between supply and demand of financial resources, that is, permanent, not for sporadic or circumstantial, which imported take funds from the public in the form of deposits and transfer them to third parties in the form of loans; giving credits.