Banking Law

Definition ∞ Banking law encompasses the legal statutes and regulations governing financial institutions, their operations, and the services they provide. This body of law dictates how banks are established, managed, and overseen, ensuring stability, consumer protection, and financial system integrity. Key areas include capital requirements, lending practices, deposit insurance, and anti-money laundering compliance. Its application to digital assets is a developing area.
Context ∞ The intersection of banking law and digital assets presents a complex and rapidly evolving regulatory landscape. Traditional banking laws were not designed with decentralized systems or cryptocurrencies in mind, leading to ongoing debates about their applicability. Jurisdictions globally are considering how to adapt existing banking frameworks or create new ones to supervise crypto businesses, particularly stablecoin issuers and digital asset custodians.