SETTLEMENT OF DISPUTES IN THE BANKING AND FINANCIAL SECTOR

Abstract

For a long time arbitration has played a rather limited role in banking and finance sector and it has been a preference for resolving arbitration and finance disputes in state courts of important financial centers, such as New York or London. The global economy has experienced extreme stresses in recent years, beginning with the banking crisis of 2007 and the global recession that followed. While financial institutions have in the past relied primarily on litigation to enforce contracts, they are increasingly turning to international arbitration. Today, the traditional reluctance towards arbitration is less prevalent and an alternative means of dispute resolution through arbitration is increasingly gaining importance in banking and finance sector.