Exam Ready Notes for ELECTIVE Module 'BANKING & DEBT FINANCE LAW' (BDF)!
Notes for Workshop 1 of the BDF elective on the Legal Practice Course (LPC) at the University of Law.
These notes were used for the June 2023 exams, where I achieved a Distinction!
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Syndicated facilitates (1): Introduction to bank lending and debt securities
Raising finance – an overview
Key players
Types of Borrowers
ü Governments (sovereign debt), which are usually short-term
ü Local Authorities
ü Individuals
ü Companies
Types of Lenders
ü Banks and institutional lenders (known as funds)
Commercial banks ® Raise money by attracting deposits and then lend money to individuals, companies
and governments who need it
® Intermediaries; move money to where it is required and provide basic banking
services
® As long as they lend prudently, there is a relatively low risk and lucrative business
Investment banks ® Sell advice and underwrite securities issued
® Trade and speculate on bonds, shares and complex financial instruments
® Huge reward, but risk of a large loss
Central banks ® All countries with developed economies have a central bank (functions vary across
jurisdictions)
® Main function of the Bank of England is to act as the government’s banker (holds its
main account and borrows on its behalf, and advise on monetary policy, to issue
bank notes, to regulate the money markets by lending or borrowing and to set
interest rates)
® Also helps other banks with short-term liquidity issues as a lender of a last resort
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