collega - Károli Gáspár Református Egyetem

The Place and Theiry of Banking Law
Table, No. 2.
The System of the Financial Industries with the Relevant Hungarian Law Suit
Environment Financial or money market 10 Capital or securities market Insurance market
Institutions banks, specialized credit institutions,
savings and credit co-operatives,
financial enterprises
Transactions
Law suite
bank account, deposit, credit, loan,
leasing, factoring, bill of exchange,
cheque, cards, collateral commitments
(bank guarantee), etc.
Act CXII of 1996 on Credit
Institutions and Financial Enterprises
Act IV of 1959 on the Civil Code of
the Republic of Hungary
stock exchange, investment firms and companies,
commission agent, securities dealers,
investment fund managers, members of the
Hungarian commodities exchange, other
sale and purchase of securities, derivatives
(swap), futures, etc.
Act CXX of 2001 on the Capital Market
insurance companies, jointstock
insurance companies,
insurance cooperatives,
insurance associations,
insurance brokers
all sorts of insurance contract
Act LX of 2003 on Insurance
Institutions and the Insurance
Business
ic system can be shatter as the domino
theory, domino effect says.
This branch of law is very unsettled
because it is young, and the
members of the jurisprudence do not
wish to create a common and clear
theory for these markets. They just
write down and summarize the actual
situation for each market or industry:
the regulation system, and give
analyses about several transactions.
As a matter of fact in these books
and documents we do not find any
effective or factual theories.
There are only some internet links
and books with the title “Financial
Industries” or use commitment for
regulation and services, 11
the public
and private law part of Banking Law.
Nevertheless this new branch of
law is suitable and full with possibilities
from the point of view of theory.
If you compare the relevant sources
of law and the common provisions
you find the main questions regulated:
1) Public Law part:
General provisions:
– definitions for activities and services,
– types of organizations, institutions,
other suppliers, members,
– required minimal capital,
– the qualifying and participating
rules for owners, and ownership
rights
– personal and material requirements,
– establishment and authorization
procedures and licences,
Rules on general operation:
– private administration – bodies of
management and control
– internal and external control and
mechanisms,
– rules of owners, managers and
controllers responsibilities,
– business and financial secretes,
protection of personal data,
– insider dealing, internal loan, intimation,
Prudent operation:
– amount of equity and subscribed
capital,
– capital adequacy,
– exposures and investments (especially
real estate) and its limitations,
– risk managing and reserves,
Supervision and control:
– type of authority,
– supervision on consolidated basis
and on prudent operation,
– supervision on activities
– conglomerates, and supplementary
supervision,
– tasks and sphere of authority,
– cooperation with other authorities,
– accountancy and audit,
Protections:
– funds established by the state or
the members,
– registers,
Other:
– advertisements and theirs limitations,
– information,
– holidays,
– international relations.
2) Private Law part:
It would be a long list to enumerate
every contract – you can find some
in the Table, No. 2. In this part all the
activities have to be shown and
analysed focusing on connections
either. The common attribute among
these transactions on these three
markets is that they are in a very
strong relationship, e.g. if you have
not enough money to purchase securities
or derivatives you can conclude
a loan contract with a bank,
and it often happens that you have
to conclude a loan security agreement
with an insurance company
either as a collateral commitment.
Finally with this roughly outlined
backbone we can begin our hard
work, our interesting, exciting and
challenging way to establish and
form the clear, plain and general theory
of the Law of Financial
Industries.
10 Banking Law focuses on this area.
11 George Gilligan and George P. Gilligan: Regulating the Financial Services Sector (STUDIES IN COMPARATIVE CORPORATE AND FINAN-
CIAL LAW Volume 6). 1999
2007. évi 2–3. szám
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