Banking law involves the law related to banking transactions, lending and other financial law issues. Law in the banking arena is both statutory and case law based. Many state and federal laws regulate the banking industry. Most of these laws are designed to protect consumers by ensuring that banking enterprises are financially stable and sound. However, banking law also involves issues between the bank and its customers. This area of law can involve everything from lending practices to mortgage issues to identity theft and fraud. Banking is big business and the large amounts of money involved in banking transactions makes this part of the law extremely important to the functioning of the economy.

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