About the Committee
The Banking Law Committee provides a worldwide forum for banking lawyers and other legal professionals within the banking community to address all sorts of practical and legal issues arising in commercial and regulatory activities in this context.
The Committee has held one of the IBA’s most popular and well established events, the International Financial Law Conference, every year since 1984.
Brexit and the impact on the banking and financial industries: do English law and English courts continue to be suitable choices in credit facilities and other financial contracts?
12 Jul 2021 1300 - 1400 BST
IBA Annual Conference Miami 2022
30 Oct - 04 Nov 2022
IBA Annual Conference 2023
29 Oct - 03 Nov 2023
Under various legal constructs, legal systems enable a party to a contract to ease its obligations or otherwise seek a rebalancing of the terms of the contract where an extraordinary and unforeseeable event makes one party’s performance excessively onerous and this results in an unreasonable imbalance in the parties’ obligations. The Covid-19 crisis has increased the interest shown by legal commentators, regulators, legislators and virtually all firms, big and small, in scrutinising the opportunities to benefit from these constructs to suspend or reduce rents in leases, to terminate or reduce committed shipments in supply agreements, to stop or reduce committed investment in franchise agreements and the like. This paper concludes that no such relief would be available to borrowers or obligors under finance agreements.
Jun 01, 2021
A message from the Co-Chairs, appearing in the June issue of the IBA Banking Law Committee e-Bulletin.
May 27, 2021
The Cum-Ex files, as so named by the team of investigative reporters who uncovered the story, is a tax fraud perpetrated by obtaining multiple capital gains tax refunds withheld on dividend distribution, even though the tax has only been paid once – or not at all. The masterminds behind the Cum-Ex fraud traded shares on the date of dividend distribution, so that multiple entities would appear to the tax authorities as owners of the same share and each claim a refund of the capital gains tax. Up until the Cum-Ex scheme was uncovered in 2011, it is said to have cost up to €55bn to European states, making it the biggest tax fraud of all time.
May 27, 2021
A report on a session which discussed UK banks banking in the EU and EU banks banking in the UK, and asked whether third country banks (ie, non-UK/non-EU banks) are in a better position.
May 27, 2021
The resilience of the Romanian banking sector has been tested over the past decade, through the financial crisis, consumer protection laws, consumer litigation and increased competition from fintech companies. The Covid-19 pandemic has brought additional strain, which will have consequences in subsequent years.
May 27, 2021
Projects and reports
Covid-19 emergency measures relating to funding and claims recovery
In 2020 the Covid-19 crisis struck economies worldwide and triggered an unprecedented set of emergency measures to financially support private companies and consumers, mitigate the impact of the outbreak on financial contracts and payment obligations and avoid systemic insolvencies. In this context, the IBA Banking Law Committee undertook a comprehensive survey of those measures across a selection of jurisdictions from Africa, Asia, Europe, North and South America, jointly representing a material part of the global economy.
The review provides a comparative description of measures under a standard grid of questions around four themes: (1) emergency funding through state guaranteed loans and sectorial support; (2) relaxation of regulatory requirements for lenders; (3) stay/rescheduling of statutory time periods and of contractual obligations, and temporary changes to insolvency and (4) work out frameworks.
The survey is meant to assist practitioners in understanding risk patterns, trends, challenges and opportunities and preparing for adjustments in their fields of practice from a domestic and international perspective. Going further, it is expected to be a reference base to explore new paradigms in banking and finance that may emerge out of the Covid-19 crisis, and their impact on banking and financial services, markets, and players.
The report has been coordinated by Jean-François Adelle, a partner at Jeantet AARPI Paris and Klaus Löber, Head of Oversight at the European Central Bank. IBA Banking Law Committee officers and members in 30 jurisdictions have contributed to the report.
Impact Investing: the rise of impact – a lawyers perspective from a business outlook
A Task Force on the rise of impact and the role of lawyers (the 'Task Force') was created in 2020. The objective of the Task Force is to produce a set of practical guidelines and recommendations related to impact investing (the 'Guidelines and Recommendations'). These are developed by business lawyers, addressed to clients who intend to attract investors such as BlackRock into their companies, by:
understanding not only technical legal issues but also the overall context, the changing paradigms and the need for flexibility, sustainability and stakeholder inclusion, where companies are accountable not only for generating profits but also for creating positive social and environmental impacts;
infusing ethics into the decision-making process, weigh legal risks and protect the company’s interests; and
becoming strategic facilitators of an organisation’s growth.
The Task Force has worked on a very practical case, where a client holding of several leading companies in various industries, with operations in many countries and shares listed in the most important exchanges, has entered into an agreement with an investor that intends to make the investment in tranches, provided the company undertakes to deal effectively with the environmental, social and governance (ESG) aspects of its businesses, with milestones to be met in the short and long term.
The Guidelines and Recommendations focus on the fundraising and corporate governance aspects of the practical case mentioned above.
On December last year, the Final Consolidated Recommendations from the Smart Governance Working Group were presented to the IBA. The conclusions of the work were discussed at IBA 2020 Virtually Together Conference in the IBA Showcase session: The rise of impact – a lawyers perspective from a business outlook, on Tuesday 17 November 2020.
Subcommittees and other groups
The Banking Law Committee also coordinates the activities of the following subcommittees/working groups.
- Alternative Finance Subcommittee
- Banking Law Committee Advisory Board
- Banking Regulation Subcommittee
- Clearing and Settlement of Financial Securities Subcommittee
- Derivatives Subcommittee
- Finance in Emerging Countries Subcommittee
- Financial and Banking Law Conferences Subcommittee
- Financial Innovations Subcommittee
- Innovations in Financing Transactions Subcommittee
- International Financial Law Reform Subcommittee
- Islamic Finance Subcommittee
- Legal Opinions Subcommittee
- Project Finance Subcommittee
- Structured Finance Subcommittee