The Genesis of Banking Confidentiality

Abstract

Since 1924 and the decision of the Court of Appeal in Tournier v National Provincial and Union Bank of England, confidentiality has been recognised as a fundamental pillar of the banker–customer relationship, existing as an implied term in the banker–customer contract. There is, however, very little analysis of the state of this area of law prior to the decision in Tournier, indeed there are only three reported cases concerning banker–customer confidentiality prior to 1924. This article seeks to outline the decision in Tournier and analyse the development of this area of law prior to that decision whilst also reflecting on the dearth of reported cases on this important issue. The discussion will explain the context of the difficulties faced by the Court of Appeal in Tournier and offer an illustration of a time when confidentiality between banker and customer was regarded as merely a matter of professionalism based upon principles of morality.