79015 Banking Law
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2025 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
Requisite(s): 79203 Business Law and Ethics OR 70110 Introduction to Law
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
This subject provides students with an understanding of the regulation of banking institutions in Australia following the deregulation of banking and concentrates on the relationships between banks and their customers. Students explore the law relating to banking and the relevant principles; the regulatory framework within which banks operate; the banker–customer relationship; giving and taking security; and the current account and consumer protection. Consideration is also given to the wide range of services currently offered by banks. Students contribute to an ongoing discussion of current developments in banking law.
Students completing this subject develop a sufficient working understanding of the areas of law to which they are introduced, to be able to advise in the resolution of problems and the planning of strategies.
The law of contracts and the law of torts are of particular relevance to the subject, but no expertise is required in any other discipline and all necessary concepts and terms are explored in class.
Subject learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | Identify and evaluate the key concepts of Australian banking law and regulation; |
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| 2. | Analyse the nature of the relationship between banker and customer; |
| 3. | Identify and apply the fundamental legal principles relating to giving and taking security; |
| 4. | Communicate in a clear, logical and succinct manner contributing informed viewpoints and respond appropriately to the contributions of peers; |
| 5. | Apply legal knowledge and analysis for problem solving in banking contexts |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the development of the following graduate attributes which reflect the course intended learning outcomes:
- Legal Knowledge
A coherent understanding of fundamental areas of legal knowledge including:
a. The Australian colonial and post-colonial legal system, international and comparative contexts, theoretical and technical knowledge;
b. The broader contexts within which legal issues arise and the law operates including cultural awareness, social justice and policy;
c. The impact of Anglo-Australian laws on Indigenous peoples, including their historical origins in the process of colonisation and ongoing impact; and
d. The principles and values of justice and ethical practices in lawyers' roles. (LAW.1.1) - Critical Analysis and Evaluation
A capacity to think critically, strategically and creatively, including the ability to:
a. Identify and articulate legal issues in context, including the skill of critical reading and writing;
b. Apply reasoning and research to generate appropriate responses;
c. Engage in critical analysis and make a reasoned choice amongst alternatives; and
d. Think creatively in approaching legal issues and generating appropriate responses. (LAW.3.1) - Communication
Effective and appropriate communication skills including:
a. Highly effective use of the English language to convey legal ideas and views to different and diverse audiences and environments;
b. An ability to communicate to inform, analyse, report and persuade;
c. An ability to strategically select an appropriate medium and message;
d. An ability to assess how messages are received and alter communication strategies accordingly; and
e. An ability to be responsive and adaptive to the perspectives of collaborators, clients, counter parties and others. (LAW.5.1) - Collaboration
Effective and appropriate collaboration skills in working together to achieve a common goal in a group learning environment or the workplace including:
a. An ability to give and receive feedback;
b. Appropriate professional and interpersonal skills in working collaboratively;
c. A capacity to develop strategies to successfully negotiate group challenges; and
d. An ability to be responsive and adaptive to the perspectives of collaborators, clients, counter parties and others. (LAW.6.1)
Teaching and learning strategies
Strategy 1 Student preparation
Students complete assigned readings and other preparatory activities prior to attending class. The Program (below) provides subject sources that students should view, listen to or read and reflect upon. Preparation enables students to engage in class discussion and to ask questions of the lecturer. Students also engage in independent research and reflection following up on topics discussed in class and, in this way, integrating their learning in each topic. Students also develop an understanding of the background to this subject and relevant current developments by reading the financial press daily – or as often as possible. Students are encouraged to initiate discussion of current developments with the class.
Strategy 2: Seminar discussion
Exploration and discussion of assigned readings and related ideas take place in each seminar and students are encouraged to ask questions whenever the legal issues seem unfamiliar. Collaborative discussion in class greatly facilitates individual learning, not only by students but also by the teacher. Students will receive feedback in class on their participation. Analytical skills developed through class discussions also enable students to practise and get feedback on their preparation of responses similar to the take-home problem. Interactive seminars provide an opportunity for students to build on their independent study and explore, analyse and reflect on a range of relevant issues as well as to develop and evaluate their own policy and regulatory positions. Students will be able to gain valuable feedback from their colleagues and the teacher and at the same time develop a sense that solutions can be discerned by collaborative exchanges.
Strategy 3: Feedback
Detailed guidance as to the assessment criteria and the provision of timely feedback are an important part of the learning process. Students receive early and ongoing feedback on their preparation and participation in seminars from the teacher and also from peers who respond to their contributions. In addition, individual formative feedback is provided on students’ seminar participation. Early feedback is provided after the in-class test and specific individual feedback is provided for the take-home problem. Feedback also comes from a student’s own reflection on their performance with reference to the subject objectives and assessment criteria.
Subject delivery
The subject involves weekly 3 hour seminars. Refer to the timetable for further information.
Content (topics)
- Australian banking system
- Regulation of banking
- Banker and customer
- Duty of secrecy
- Lending, security and accounts
- Transfer of funds
- Electronic banking
- Consumer protection
- Recent issues
Assessment
Assessment task 1: Class Participation
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3, 4 and 5 This task contributes specifically to the development of the following graduate attributes: LAW.1.1, LAW.3.1, LAW.5.1 and LAW.6.1 |
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| Weight: | 20% |
| Length: | 500 words (notional) |
| Criteria: |
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Assessment task 2: 'In class' Test
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3, 4 and 5 This task contributes specifically to the development of the following graduate attributes: LAW.1.1, LAW.3.1, LAW.5.1 and LAW.6.1 |
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| Weight: | 30% |
| Length: | 1500 words (notional) |
| Criteria: |
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Assessment task 3: Take-home Problem Paper
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3, 4 and 5 This task contributes specifically to the development of the following graduate attributes: LAW.1.1, LAW.3.1, LAW.5.1 and LAW.6.1 |
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| Weight: | 50% |
| Length: | 2000 words |
| Criteria: |
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Required texts
The prescribed text is Alan L. Tyree, Banking Law in Australia 10th edn, Lexis Nexis 2021
Recommended texts
No other texts are specially recommended, but see the list of relevant resources under the next heading.
References
Banking
- Everett and McCracken, Banking & Financial Institutions Law 9th edn Thomson Reuters (Lawbook) 2017.
- Weaver GA and Craigie CR, The Law Relating to Banker and Customer in Australia, Web – Legal Online.
- King & Wood Mallesons, Australian Finance Law, Thomson Reuters (Lawbook) 7th ed, 2016.
General
- A wide range of material on this subject is available on the internet.
- Web-sites of major institutions and organisations discussed in class are particularly recommended and are easily located.
- Other useful individual sites include www.aph.gov.au and www.ausbanking.org.au
- The APRA site is at www.apra.gov.au
- The ASIC site is at www.asic.gov.au
- The RBA site is www.rba.gov.au - for the payments system go on to /payments-and-infrastructure
- There are many sites with reference to anti-money-laundering; see for example www.austrac.gov.au.
- The sites of many leading law firms are also worth investigation; see for example www.aar.com.au or www.kwm.com/en/au