Banking and Financial Regulation in Asia (LAWS90323)

The subject acquaints students with financial regulation principles across diverse sectors of financial markets within several Asian jurisdictions such as Singapore, Hong Kong, China, Japan and South Korea. Given the absence of harmonised cross-jurisdictional laws in Asia, we adopt a comparative approach, emphasising both similarities and differences, This subject is designed to equip students with an understanding of the diverse regulatory approaches within Asian financial markets, enhancing their ability to engage effectively with experts across multiple jurisdictions. 

We begin with an overview of financial markets and banking sectors and analyse the roles and objectives of central banks in key Asian countries. We also examine ASEAN’s approach to reciprocity in the financial industry and the roles and objectives of central banks. We delve into the complexities of banking operations and regulations, the global approach to bank regulation, and analyse the regulatory frameworks governing banks in Singapore and Hong Kong in more detail. We also explore the evolving landscape of FinTech, electronic payment systems, algorithmic trading, crypto-asset regulation and anti-money laundering measures. 

Our subject concludes with an exploration of the legal concepts and future directions of money, including the rise of stablecoins and Central Bank Digital Currencies (CBDCs) in Asia, culminating in a group project that synthesises these elements. 

Intended learning outcomes

On completion of this subject, students should be able to:

• Examine the roles, objectives, and legal frameworks guiding central banks in Asia and critically assess the diverse systems and regulatory approaches prevalent across key Asian financial markets;
• Explain and evaluate the ASEAN concept and its strategy for integrating financial markets within the broader context of regional economic cooperation;
• Critically analyse the principles governing bank regulation and apply them to practical scenarios;
• Investigate the regulatory approaches to crypto-assets across Asia and interpret the concept of Central Bank Digital Currency (CBDC);
• Describe and assess the legal aspects of money and the complexity arising from technological advances and how illicit activities, especially related to money laundering, are addressed in Asia.

Generic skills

• Develop the ability to critically analyse complex legal and regulatory issues within the context of Asian financial markets, and to synthesise information from diverse sources to form well-reasoned conclusions.
• Enhance skills in articulating complex ideas clearly and persuasively, both in written and oral forms, particularly when discussing nuanced legal concepts and their applications across different jurisdictions.
• Cultivate the ability to apply legal principles and regulatory frameworks to real-world scenarios, making informed decisions and proposing effective solutions to challenges in the financial sector.