LAW

Wrongful Payments in Banking

Introduction

Banking is a branch of Private Law specializes in the treatment of money, the institutions concerned to work with him as well as the relationships that these entities are born of contact with the individual. This is where we find the set of principles and legal rules governing banking activity, the establishment and operation of financial institutions (Ellinger, Lomnicka & Ellingers, 2011).

We understand banking as a set of practices, acts or contracts executed by banks, ie what we know as banking. Such matter has similarities with the Company Law, because banking is also business entrepreneurs and their representatives are practicing acts of the company.

Discussion

The object of banking activities comprises securities, capital markets, investment services and financial activity that involve the tripartite finance on credit, investment and insurance. The particular aspect of this segment of the law is that, despite all matters requiring constant changes and updates to keep up with innovations that appear in everyday life of the citizen, which occurs with the Banking Law changes occur more dynamically.

It closely follows the economic, being incompatible with orthodoxy that usually accompanies the rule of law. Despite this momentum, it is increasingly necessary to composition rules and orders intended to banks and financial institutions. Thus, it focuses on the following points:

Organization of banking and financial system

Regulating the activity of credit institutions and financial companies.

There are two main strands within the matter, namely the Institutional Banking, dealing with banks and their behaviour as public or private institutions, and Banking Material, which deals with the functioning of financial and credit institutions.

In UK we have an important tool to study the regulation and Act 4595 of 1964, regulated by several resolutions of the European Central Bank and the National Monetary Council. It is called the Banking Reform Law, where we find the definition of the National Financial System. In this law, we have such a system consists of:

National Monetary Council;

Official banks;

Private and public financial institutions

European Parliamentary Union pledged new powers for the European Central Bank to oversee 6000 banks in the euro zone, the first step in the formation of a banking union in the block.

Lawmakers decided to allow the ECB to become a new bank supervisor from 2014, almost a year after the European Union governments have backed the plan. The goal of creating a single set of standards and reference for banks in the euro zone, with mechanisms to close broken institutions and protect savers deposits, is one of the most ambitious and challenging EU concern (Gheorghe, 2009).

After more than three years of financial turmoil and bailouts granted to Greece, Ireland, Portugal and Cyprus, set a more unified banking system in the euro zone is considered critical for the defense against future crises (Milne, 2009).

It has been observed in the case of Germany that the banking institutions have limited the scope of the supervision of the ECB and also plans for an independent authority and funding for banks that collapse, ...