Banking and finance law focuses on the contractual relationship between lenders and borrowers. In all financial transactions, the main aim is to negotiate and manage this relationship to ensure the represented party’s interests are met both legally and commercially.
Different areas in this vast topic include the following:
- Bank Lending: A personal or business loan agreement where the bank lends money to a borrower that come attached with documented repayment terms
- Property Finance: A loan is sought and agreed for the purposes of enabling a borrower to obtain a property or develop the land of which a property will be built. Typically, this will be acquired through a mortgage
- Project Finance: A longer-term, multi-phased and often multi-faceted infrastructure project that involves public services. The amount is borrowed to carry out the project to and is paid back once it starts to bring in money
- Acquisition Finance: A loan borrowed by one company to provide it with the funds to purchase another company. Leveraged finance also comes under this area, whereby a borrower lends a considerable sum of money to meet the cost of acquisition requirements without committing to paying its own money
- Assets Finances: The lender will take security over the specific assets purchased (usually considerable sums)
- Derivatives: Understanding and managing currency rates during a transaction
- Capital markets: When a transaction takes place, a borrowing entity gives bonds to investors
- Islamic finance: Shari’a law prevents the collection and payment of interest on a loan. Islamic finance specialists work with Muslim borrowers, lenders and investors to ensure banking and financial arrangements are compliant with Shari’a law
