Banking law is the body of law (statutes, regulations) that governs how banks and other financial institutions operate their businesses. Banking is a highly-regulated industry, and banks must comply with federal, state, and local laws and regulations.
For example, most banks are required to comply with the Federal Deposit Insurance Corporation (FDIC) laws and regulations; the Dodd-Frank Wall Street Reform and Consumer Protection Act; the regulations of the Board of Governors of the Federal Reserve System (the Fed); the regulations of the Office of the Comptroller of the Currency (OCC); and state laws and regulations. Many of the applicable banking regulations are located in the Code of Federal Regulations, beginning at 12 CFR §1.1.
In Texas, banking law encompasses both federal and state regulations that govern the operation of banks and other financial institutions. Federally, banks must adhere to regulations set forth by the Federal Deposit Insurance Corporation (FDIC), which insures deposits and oversees financial practices. The Dodd-Frank Wall Street Reform and Consumer Protection Act also plays a significant role in regulating financial practices to prevent systemic risks and protect consumers. Additionally, the Federal Reserve (the Fed) and the Office of the Comptroller of the Currency (OCC) set regulations that banks must follow. At the state level, Texas banking institutions are regulated by the Texas Department of Banking, which enforces state laws and regulations pertaining to the establishment and operation of state-chartered banks. Texas banks must comply with both sets of regulations, and failure to do so can result in penalties or other enforcement actions. Attorneys specializing in banking law can provide guidance on compliance with these complex and often overlapping regulatory frameworks.
