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Role of Lawyer in Financing and Banking

Finance and banking are the lifeblood of trade, commerce, and industry. The development of any country mainly depends upon the banking and finance system of the country. Banking and finance is a term of managing the money by investing it in either banks or other financial institutions.

Basically, Finance is generally referred to as management of the money Whereas banking is defined as the stabilization of financial systems. The term Banking and Finance are two very different terms but are correlated together. These two terms are often used to denote services that a bank and other financial institutions provide to its customers. The banking system is a key element of international economics. Banks act as a bridge between the investor and the financial institution of the world.

The bank is also known as financial intermediaries that responsible to maximize investor's satisfaction on investment return. Besides that, banks are financial intermediaries between depositors who providing capital resources and borrowers who looking for demand on capital.

Banks have a positive effect on direct financing (markets). Banks encourage direct financing by selling underwriting contracts to investors who wish to invest directly. A bank is a financial institution which deals with deposits and advances and other related services. Banking is one of the most essential and important parts of human life. The growth of the Indian economy is estimated to have slowed down significantly. The structure of the financial system is concerned with the channels through which funds are transferred from savers to entrepreneurs with investment opportunities.

Section/Acts related to Finance and Banking

  1. The Narasimham Committee was set up in the 1980s to recommend changes in the financial system of the country. The Committee suggested some elementary changes in the system for de-regulation and liberalization of banks.
  2. Reserve Bank of India Act, 1934.
  3. Banking Regulation Act
  4. Licensing of Banking Companies- Section 22 of the Banking Regulation Act
  5. Negotiable Instruments Act, 1881 (NI Act)

Work of a Lawyer in Financing and Banking

  • Law is a common area for all financial advisers and planners. A lawyer in a banking institution is not always limited to give legal advice or handle lawsuits representing banks in courts, they are entrusted with versatile work roles.
  • Banking and finance lawyer arranges loans to buy other companies or to finance new business ventures. They also give legal advice and work on a variety of corporate and finance-related cases.
  • Lawyers may begin a new case by meeting with a client to clearly understand the prevailing issues. For example, a lawyer may advise a client on how to set up a new business, including whether to structure it as a limited liability company, limited partnership, or other types of business.
  • Additionally, the lawyer might assist the client in providing appropriate documentation, like bank accounts, credit card numbers, and a tax identification number. He or she may then advise the client on creating contracts for employees and securing lending from banking institutions.
  • Lawyers also may represent their clients at trial. Lawyers present a client's case in court by questioning experts, cross-examining witnesses, providing supporting evidence, and making closing arguments.


The banking system is a key element of the international economy. The modern banking services have helped in easing the process of trade, development of industries, and other activities that help in the development of the country's economy.

Banks and other financial institutions that promote the growth of businesses and safeguard the money and other valuable assets of individuals certainly play an integral role in the development of a country's economy.

Finance lawyers assist clients with financial matters that range from tapping debt markets to assisting corporations with restructuring businesses. lawyers may specialize in categories including banking, project finance, real estate finance, and private equity finance, or they may have broad industry knowledge.


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