This chapter discusses other regulatory techniques to control bank risk-taking, many of them developed since the global financial crisis of 2007–9. The Basel Committee has now introduced two liquidity standards for banks as internationally harmonising measures: the liquidity coverage ratio and the Net Stable Funding Ratio (NSFR). Besides liquidity management rules, there are other measures of micro-prudential regulation developed or enhanced after the crisis. One is the leverage ratio, which sets an absolute amount of lending banks can engage in, regardless of risk-weighting. Another is large exposures regulation in the EU, which deals with controlling the over-concentration by banks in lending to certain customers. The chapter also looks at systemically important financial institutions that are global banks with such an international footprint that their vulnerabilities may threaten financial systems and economies more acutely than other banks. Moreover, it illustrates the frameworks for stress testing.
Chapter
9. Micro-prudential regulation II
Other measures
Iris Chiu and Joanna Wilson
Chapter
5. Case law
Scott Slorach, Judith Embley, Peter Goodchild, and Catherine Shephard
This chapter first discusses the fundamental distinctions between common law and civil law, an important aspect of which is the role of judge-made law. It then examines the operation of the doctrine of precedent—the means by which law made in earlier cases binds the reasoning of some courts in later cases. This involves the skill of identifying statements of law, and the skills involved in applying those earlier statements, or alternatively avoiding their impact. It then considers the arguments for and against the roles of judges and legislators in making law.
Book
Aruna Nair
Essential Cases: Land Law provides a bridge between course textbooks and key case judgments. Essential Cases provides you with succinct summaries of some of the landmark and most influential cases in land law. Each summary begins with a review of the main case facts and decisions. The summary is then concluded with expert commentary on the case from the author, Aruna Nair, including her assessment of the wider questions raised by the decision.
Book
Jonathan Herring
Essential Cases: Criminal Law provides a bridge between course textbooks and key case judgments. Essential Cases provides you with succinct summaries of some of the landmark and most influential cases in criminal law. Each summary begins with a review of the main case facts and decision. The summary is then concluded with expert commentary on the case from the author, Jonathan Herring, including his assessment of the wider questions raised by the decision.
Book
Jonathan Herring
Essential Cases: Criminal Law provides a bridge between course textbooks and key case judgments. Essential Cases provides you with succinct summaries of some of the landmark and most influential cases in criminal law. Each summary begins with a review of the main case facts and decision. The summary is then concluded with expert commentary on the case from the author, Jonathan Herring, including his assessment of the wider questions raised by the decision.
Chapter
5. Case law
Scott Slorach, Judith Embley, Peter Goodchild, and Catherine Shephard
This chapter first discusses the fundamental distinctions between common law and civil law. It then examines the operation of the doctrine of precedent, and considers the arguments for and against the roles of judges and legislators in making law.
Book
Aruna Nair
Essential Cases: Land Law provides a bridge between course textbooks and key case judgments. Essential Cases provides you with succinct summaries of some of the landmark and most influential cases in land law. Each summary begins with a review of the main case facts and decisions. The summary is then concluded with expert commentary on the case from the author, Aruna Nair, including her assessment of the wider questions raised by the decision.
Chapter
4. Sources of Law II: Case Law
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. This chapter focuses on case law, a major source of law providing for the interpretation of statutes and the application of law to particular circumstances. Case law, also known as the common law, is a set of judge-made rules that have either a binding or persuasive effect on future cases. Judge-made means that a member of the judiciary has decided a case in a certain way, which has led to the development of that particular piece of law. Certain courts are obliged to follow previous judgments, whereas other can ignore them due to their seniority. Indeed, the doctrine of precedent denotes a system of case law—binding or not—that a lower court may or may not have to follow. Whether precedent is binding is dependent on whether there is a statement of law, as opposed to fact, certain reasoning for that decision (known as ratio decidendi), and the decision of a superior court.
Chapter
7. Using cases
This chapter explains how to use cases. It first looks at the ‘anatomy’ of a law report, before considering how the key legal principles can be extracted from the case. Once the legal principles are known it considers the extent to which those principles are binding on other courts via the doctrine of judicial precedent. Finally, it examines the impact of both the Human Rights Act 1998 and EU law on the operation of precedent.
Chapter
7. Using cases
This chapter explains how to use cases. It first looks at the ‘anatomy’ of a law report, before considering the means by which the key legal principles can be extracted from the case. Once the legal principles are known it considers the extent to which those principles are binding on other courts via the doctrine of judicial precedent. Finally, it examines the impact of both the Human Rights Act 1998 and EU law on the operation of precedent.
Chapter
5. The doctrine of judicial precedent
This chapter considers an essential source of law in the English legal system: judicial precedent (or ‘case law’). The rules and principles of the doctrine of judicial precedent are explored, including how precedents are created, developed, and followed. The chapter analyses the rule that forms the precedent—the ratio decidendi, or the reason for the decision—as well as the importance of other judicial statements that do not form part of those reasons—the obiter dicta. The principle of binding precedent is captured by the expression ‘stare decisis’ (stand by what is decided) and binding precedent relies on a hierarchy of courts. The hierarchy can help to establish whether a particular ratio decidendi binds a particular court and whether an appellate court is bound by its own previous precedents. The chapter is packed with case law examples and highlights the role of non-binding precedent which may still be deemed persuasive for a particular court. The relationship between the English courts and the Court of Justice of the European Union (EU) and the European Court of Human Rights (ECtHR) is considered. Finally, the chapter considers how a court may avoid following a particular precedent by the process of overruling, distinguishing, or reversing.
Chapter
5. The doctrine of judicial precedent
This chapter considers an essential source of law in the English legal system: judicial precedent (or ‘case law’). The rules and principles of the doctrine of judicial precedent are explored, including how precedents are created, developed, and followed. The chapter analyses the legal rule that establishes the precedent—the ratio decidendi, or the reason for the decision—as well as the importance of other judicial statements that do not form part of those reasons—the obiter dicta. The principle of binding precedent is captured by the expression ‘stare decisis’ (stand by what is decided) and binding precedent relies on a hierarchy of courts. This hierarchy helps to determine whether a particular ratio decidendi binds a particular court and whether an appellate court is bound by its own previous precedents. The chapter is packed with case examples and highlights the role of non-binding precedent which may still be deemed persuasive for a particular court. Finally, the chapter considers how a court may avoid following a particular precedent by the process of overruling, distinguishing, or reversing.
