The business of banking is in many English common law countries not defined
by statute but by common law, the definition above. In other English common
law jurisdictions there are statutory definitions of the business of banking
or banking business. When looking at these definitions it is important to
keep in mind that they are defining the business of banking for the purposes
of the legislation, and not necessarily in general. In particular, most of
the definitions are from legislation that has the purposes of entry
regulating and supervising banks rather than regulating the actual business
of banking. However, in many cases the statutory definition closely mirrors
the common law one.
Banking business means the
business of either or both of the following:
1. receiving from the general public money on current, deposit, savings or
other similar account repayable on demand or within a period.
2. paying or collecting cheques drawn by or paid in by customers.
3. other financial instruments
such as bankers cheques, letter of credit, etc.