The Legal Basis of Depositor’s Fund in Banking Systems: A Comparative Analysis

Abstract

Banks generate a huge amount of profits by earning more money than what they pay in return to the customers although they depend heavily on depositor funds such as current and savings accounts. There are some reasons for banks not to return a part of the profits generated to the customers; one of the reasons is related to the legal basis in which the deposits are received. The paper examines, the legal basis of depositor accounts taking into consideration various legal and juristic views as expressed by scholars from different schools of law with the view of proposing specific solutions so as to ensure a fair distribution of profits between banks and their customers.