Law360: Bank of Ireland (BOI) allegedly deceived a real estate investment business into borrowing millions from it by giving inflated property evaluations based on old estimates that were £1.2m higher than up-to-date figures, according to a London court filing.

Restructuring & Insolvency analysis: The Court of Appeal dismissed Morley’s appeal, rejecting his claim for damages against Royal Bank of Scotland (RBS) for alleged breach of duty and alleged intimidation and economic duress. Morley alleged RBS had breached its duty of reasonable skill and care in negotiating a consensual resolution where a £75m loan had expired which Morley was unable to repay in full. The Court of Appeal held that RBS owed no such duty and its only duty was the limited duty owed as mortgagee, which had not been breached. Moreover, the Court of Appeal rejected Morley’s claim that he could set aside the agreement which had been reached with RBS on grounds of intimidation and duress as Morley could not prove coercion. The case is a reminder of the difficulty of establishing claims of economic duress in commercial contexts and emphasises the limited scope of a bank’s duty once the lending contract has come to an end. Written by Paul Sinclair QC, barrister, at Fountain Court Chambers.

Commercial analysis: This was a case relating to items in 14 safety deposit boxes (SDBs) held at a London bank. Due to the passage of time, the Bank was no longer able to trace the owners of those items, which it now wished to sell. In relation to those goods which had been deposited after 1 January 1978, the court confirmed that these could be sold under sections 12–13 of the Torts (Interference of Goods) Act 1977 (T(IG)A 1977). In respect of goods deposited prior to that date, and which remained subject to general common law, the court was persuaded that the Bank could rely on the principle established in the case of Da Rocha-Afodu: namely, that given that it had done all that was right and reasonable to trace and notify the owners, it should be protected from any potential liability which might otherwise attach as a consequence of the sale. Written by Natasha King, barrister at 4 Pump Court.

An interest rate set by the Bank of England intended to keep inflation low. Other banks frequently set their own rates by reference to the base rate, now called bank rate, but in recent years LIBOR has proved more important as a regulator of rates.

This Practice Note provides an overview of the reforms to the UK’s bank recovery and resolution regime introduced by the Bank Resolution (Recapitalisation) Act 2025 (the Act). The Act applies to all institutions to which the special resolution regime (SRR) under the Banking Act 2009 (BA 2009) applies. It therefore applies to banks, building societies and certain investment firms designated by the Prudential Regulation Authority (PRA). For ease, this Practice Note refers to these institutions together as ‘banks’. Background to the Act Failure of Silicon Valley Bank Silicon Valley Bank (SVB) was a US tech-focused lender. From July 2022, it operated in the UK via a separate legal entity, Silicon Valley Bank UK Limited (SVBUK). SVBUK was authorised by the PRA and, like any other UK bank, dual-regulated by the PRA and the Financial Conduct Authority (FCA). As a standalone subsidiary, SVBUK had its own individual capital and liquidity requirements separate to those of its parent, SVB. SVBUK’s customer base was concentrated in the UK innovation sector (particularly

The term banker may be defined in terms of the business activities of banks.

The general rule is that the banker is a bailee for value as regards any property deposited with him for custody.

Law360, Expert analysis: The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) consultation on reducing restrictions on the senior banker remuneration regime, which opened in November 2024, concludes on 13 March 2025. This article explores the proposals to make the regime more effective, simple and proportionate, and highlights the, possibly unforeseen, consequences that may also arise. Written by Marian Bloodworth, partner, Sebastian Sayer, partner, Helen Unger, professional support lawyer, and with the contribution of Lucy Sorell, legal director, at Fox Williams LLP.

A banker is under a duty to pay cheques drawn on him by a customer so long as he has sufficient and available funds and provided the cheques are within the limits of an agreed overdraft.

The general lien of bankers is part of the law merchant and it refers to the right of a banker to retain the subject matter of the lien until an indebtedness of the customer is paid or discharged.

A banker's lien over bills occurs when a banker has a lien on a bill handed to him by a customer for collection where the customer is or becomes indebted to him.

The general rule is that the banker has a right of set-off which means that unless expressly excluded by agreement or implied from the course of business, the banker may combine accounts kept by the customer in his own right, even though at different branches of the same bank, and to treat the balance as the only amount standing to his credit.