Some Legal Issues in Cross Border Banking Regulation


Cross border banking can be undertaken in three modes: subsidiary banking (whereby a separate legal entity is incorporated in the domestic jurisdiction), branch banking (whereby a company may carry on business in more than one place) and cross border banking by contract (involves dealing outside the domestic jurisdiction without a physical presence).  Regardless of which method is being adopted, it is common that regulation remains territorial. As international regulations are not uniform, there is a conflict of laws as banks venture beyond their domestic borders and into international banking systems.  As such, development of reforms and frameworks are necessary to remove the difficulties and create efficiencies associated with banks contracting under foreign law.

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This paper was presented in July 2015 at the 20th Melbourne Money and Finance Conference (MMFC), which explored the theme The Australian Financial Sector and Global Integration.

For more papers presented in the conference, please click here.