European banks and the cross-border provision of services via the Internet: Commercial practices and regulatory concerns

Abstract

An increasing number of European banking institutions have become active in the provision of banking and other financial services over the Internet in their domestic markets and abroad. This paper attempts to tackle two pivotal issues: the implications this strategy has for the licence requirements that apply on every single occasion and, furthermore, how the problem of allocation of regulatory jurisdiction is resolved in view of the uncertain territorial elements of a cross-border Internet transaction. The analysis will be based on legal developments in three key European jurisdictions, namely the UK, France and Germany, as well as the community regulatory framework.