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[Music] hello I'm Philip Rawlings the ROI good professor of commercial law at the Center for commercial law studies Queen Mary University of London and also convener for commercial banking law bank customer relationship on the international program of the University of London as its title suggests this course deals with the English law and various features of the relationship between banks and their customers what rights and duties do banks and their customers have banking is fundamental to any developed economy banks receive deposits which they lend out and act as intermediaries in payments the first issue we need to consider is what is a bank it may be easy to recognize but rather hard to define muster business have certain features do certain things before we can call it a bank what are those things taking deposits lending money acting in the transmission of payments since so much rests on them we might ask why key words such as Bank banking and customer have never been clearly defined why can't we just look at some legislation or case and find the answer as we'll discover one reason we can't is that the nature of banking changes rapidly just think about the impact of the internet on the way in which we do banking transactions so if we establish a definition of a bank how well will it work in 10 or 20 years time this discussion will make us think about what banks do and it leads us to other issues the first of these is what are the terms of a banking contract these seem relatively obvious for example the bank must obey the customer's instructions and mustn't disclose to anyone information relating to its customers account but neither is absolute for instance the duty of confidentiality has been eaten away by legislation governments have taken the view that criminals should not be able to hide their ill-gotten gains and so banks should be forced to disclose information about their customers this requires us to think about how far such intrusions should go when should the police be able to look at a bank account and that touches on the relationship between privacy human rights and state security the course also looks beyond these contractual rights and duties because a bank may find itself liable in tort where a customer has lost money by relying on the bank's expertise for example is the bank liable when it gives advice or lends money to a customer for a project that subsequently fails banks may also face difficulties if funds pass through accounts that have come from criminal activities it's a criminal offense to breach the laws on money laundering which were put in place to attack the profits made from serious crime this course also discusses money and payment systems again we come up against a problem of definition what is money we may believe we all know what money is or perhaps we just know we could do with more of it but what is the difference between money in the form of banknotes and money in a bank account or between a 20 pound Amazon gift and a 20 pound Bank of England banknote is the money in my bank account my money we might say I have a hundred pounds in my bank account if that were true every time the bank wanted to lend the money it would need to ask permission from its depositors yet if the credit balance in my account is the bank's money then what do I have all of this leads nicely into a discussion of payment payment can be made in many ways and it's for lawyers to work out the legal rights and obligations involved payment involves parties other than the person paying and the person receiving payment if I use a credit card to buy a pair of shoes how does the money go from me to the seller and what are the rights and duties of the parties if the credit card company becomes insolvent before payment is made to the seller do I still owe the money to the shoe shop what if the seller becomes insolvent in the shoes are defective do I still have to pay my credit card bill a couple of other points this course doesn't deal with landing that's discussed elsewhere on the degree program although inevitably we do touch on the issue at various points during this course also a knowledge of English contract law is not necessary for this course you'll learn all you need to know banking law is a fascinating area the legal framework has a very long history but new methods of undertaking banking business are stretching and challenging that framework as lawyers we must be ready to answer the difficult questions that are being posed the aim of this course is to help you along this road by looking at the underlying principles and applying them to new problems [Music]