Banking Law Research Paper Topics

We study rules that move markets and shape everyday life, and banking law sets the guardrails for money, credit, and risk. We see capital standards, resolution tools, fintech products, sanctions policy, and consumer protection shifting fast across jurisdictions, which gives students timely and well-scoped ground for papers. We write as a team at TopicSuggestions, and today we will share focused, research-ready topics you can turn into clear arguments with accessible sources and recent cases.

The Best Banking Law Research Paper Ideas

We organize the ideas by core themes—regulatory frameworks and supervision, compliance and AML, fintech and digital assets, consumer rights, bank governance and risk, cross‑border and comparative law, ESG and climate risk, and enforcement and litigation—with a brief angle for each. We keep it practical so you can pick a topic, set a thesis, and start drafting with confidence.

1. We test whether counterfactual explanations can make probation risk assessments actionable and fair

– We measure how judges and probation officers change recommendations when we provide individualized “what-if” pathways to lower risk.
– We estimate heterogeneous impacts of counterfactuals by race, gender, offense type, and prior violations.
– We assess whether we can reduce technical violations and revocations over 12 months through counterfactual-informed supervision plans.

2. We examine how urban heat islands interact with electronic ankle monitors to influence parole compliance

– We quantify whether we see spikes in tamper alerts and noncompliance during heat waves due to device overheating or skin injury.
– We test whether we can mitigate compliance issues with cooling protocols, device redesigns, or schedule adjustments.
– We evaluate whether we observe disparate impacts on supervisees in heat-vulnerable neighborhoods.

3. We analyze courtroom acoustics as a hidden driver of miscommunication for non-native speakers

– We map how microphone placement, reverberation time, and background noise correlate with interpretation errors and transcript inaccuracies.
– We estimate whether we see changes in plea decisions, objections, and appellate reversals when we improve acoustic conditions.
– We test whether we reduce disparities for language-minority defendants via low-cost acoustic interventions.

4. We evaluate asynchronous VR-mediated restorative justice encounters for serious offenses

– We compare whether we achieve higher participation and safety when victim and offender engage in time-shifted VR sessions with controlled prompts.
– We measure whether we see durable changes in victim well-being, offender empathy, and recidivism at 6–24 months.
– We assess whether we detect equity concerns when access to VR restoration varies by facility resources.

5. We investigate overnight police microdrone surveillance noise and next-day community cooperation

– We test whether we observe reduced 911 calls, witness cooperation, and tip-line usage after drone flight nights due to sleep disruption.
– We estimate whether we can offset any cooperation losses with targeted next-day outreach.
– We examine whether we detect neighborhood-level heterogeneity by prior police-citizen trust and noise baselines.

6. We study real-time income-indexed fines using payroll APIs and their legitimacy in misdemeanor cases

– We evaluate whether we improve payment compliance and reduce warrants when fines auto-adjust to verified income changes.
– We measure whether we observe differential effects on low-income and gig-economy defendants.
– We assess whether we increase perceived fairness or trigger privacy concerns that erode compliance.

7. We pilot jail wastewater analytics for early detection of synthetic drug surges and safety risks

– We determine whether we can predict contraband incidents and medical emergencies from compound-specific trends.
– We test whether we reduce harms without increasing false-positive searches or collective punishment.
– We evaluate whether we maintain legal and ethical norms around group-level surveillance and consent.

8. We examine defense access to escrowed source code for closed-source forensic tools and plea dynamics

– We test whether we observe shifts in plea rates, trial frequency, and suppression motions when defense experts can inspect code under protective orders.
– We estimate whether we reduce wrongful guilty pleas tied to undisclosed tool errors.
– We assess whether we see differential impacts across jurisdictions with varying discovery rules.

9. We assess shadow suppression of copwatch content on social platforms and downstream accountability

– We measure whether we detect algorithmic down-ranking of police oversight videos and its timing relative to misconduct events.
– We test whether we see effects on complaint filings, media coverage, and civil litigation outcomes.
– We evaluate whether transparency labels or appeals processes restore reach and accountability signals.

10. We analyze holographic telepresence arraignments and their effects on procedural justice and bail

– We test whether we observe changes in judicial eye contact, turn-taking, and perceived voice when defendants appear via hologram.
– We estimate whether we see shifts in bail amounts, release conditions, and failure-to-appear rates.
– We assess whether we can mitigate any negative effects with calibrated latency, room design, and counsel proximity.

11. Regulating tokenized bank deposits: defining custody, deposit insurance, and creditor hierarchy for on-chain bank liabilities

We propose research questions: 1) How should existing deposit insurance regimes treat tokenized deposits issued by regulated banks? 2) How should custody and legal title be defined where banks issue liabilities on public blockchains? 3) How should creditor priority be reconfigured when on-chain records substitute traditional ledgers?
We outline how to work on this: We will combine doctrinal analysis of deposit insurance statutes and insolvency law, comparative mapping of jurisdictions that allow tokenized deposits, and stakeholder interviews with custodians and regulators to draft model legal definitions and policy recommendations.

12. Legal duties of banks using opaque machine-learning credit scoring: obligations of explainability and auditability

We propose research questions: 1) What fiduciary, consumer protection, and anti-discrimination obligations arise when banks deploy black-box ML models for lending? 2) How should explainability standards be operationalized in prudential supervision? 3) What legal liability frameworks should apply for algorithmic errors harming borrowers?
We outline how to work on this: We will perform statutory and case-law review, design a normative framework linking regulatory objectives to technical explainability metrics, and run expert interviews with bank compliance officers and ML auditors to produce enforceable regulatory text options.

13. Bank resolution in a CBDC environment: priority, liquidity tools, and cross-border coordination

We propose research questions: 1) How do central bank digital currencies change liquidity buffers and the triggers for bank resolution? 2) What legal adjustments are needed to preserve depositor preference or bail-in regimes when CBDCs exist? 3) How should cross-border resolution protocols adapt when CBDCs cross jurisdictional boundaries?
We outline how to work on this: We will map current resolution statutes, model liquidity stress scenarios with CBDC adoption, and convene comparative analysis with central bank policy papers to propose statutory revisions and international coordination mechanisms.

14. Privacy-preserving AML compliance: legal fit of zero-knowledge proofs and selective disclosure in retail banking

We propose research questions: 1) Can zero-knowledge proof protocols satisfy KYC/AML “know your customer” statutory requirements without full data sharing? 2) How should regulators balance privacy rights against AML obligations in bank relationships employing selective disclosures? 3) What audit and supervision mechanisms are legally required for cryptographic proofs?
We outline how to work on this: We will analyze AML statutory texts, evaluate cryptographic protocols with technologists, pilot legal compliance models in collaboration with a bank sandbox, and craft regulatory guidance that aligns privacy-protective tech with enforcement needs.

15. Legal challenges of embedded finance: bank duties and regulatory perimeter when non-bank platforms provide banking services

We propose research questions: 1) When platforms embed bank products (payments, credit), how should consumer protection duties be allocated between bank and platform? 2) How should the regulatory perimeter be redrawn to capture platform conduct that shapes financial risk? 3) What disclosure and liability regimes should govern co-branded banking services?
We outline how to work on this: We will conduct comparative regulatory analysis, examine contractual arrangements between banks and platforms, survey consumer harm cases, and develop model rules clarifying allocation of duties and supervisory authority.

16. Climate-linked prudential capital: legal mechanisms for integrating transition risk into bank capital requirements

We propose research questions: 1) What statutory amendments are required to mandate climate transition risk adjustments in prudential capital regimes? 2) How can legal frameworks ensure forward-looking, scenario-based capital buffers without violating proportionality and equal treatment principles? 3) What governance duties should attach to banks’ climate stress-testing?
We outline how to work on this: We will map existing prudential laws, design legal templates for climate buffer rules, empirically test balance-sheet impacts using sample bank portfolios, and draft governance obligations for boards and supervisors.

17. De-banking and the law: legal remedies and regulatory duties when banks withdraw services from gig-economy and crypto-linked customers

We propose research questions: 1) What anti-discrimination or fair-access legal claims can affected customers bring when banks unilaterally exit segments? 2) How should regulators supervise de-risking to prevent financial exclusion while maintaining AML objectives? 3) What remedies or alternative rails should the law require?
We outline how to work on this: We will collect empirical data on account closures, analyze consumer protection and equal-treatment laws, interview affected businesses and banks, and propose regulatory interventions and mandated alternative service obligations.

18. Smart-contract collateral enforcement by banks: reconciling automated remedies with insolvency stays and human discretion

We propose research questions: 1) Are automated self-help enforcement clauses in smart contracts enforceable against borrowers in different legal systems? 2) How should insolvency law treat on-chain liquidation triggers that bypass court stays? 3) What contractual drafting standards can prevent jurisdictional enforcement conflicts?
We outline how to work on this: We will perform comparative contract and insolvency law analysis, test legal outcomes through hypothetical dispute simulations, consult insolvency practitioners, and draft recommended statutory carve-outs or mandatory protections.

19. Cross-border supervisory sandboxes: legal design for supervisory data-sharing, liability shields, and consumer protection

We propose research questions: 1) How should legal frameworks authorize and limit data-sharing between sandbox supervisors across borders? 2) What liability protections can be granted to firms and supervisors without undermining consumer redress? 3) What governance models balance innovation assistance with regulatory accountability?
We outline how to work on this: We will inventory existing sandbox agreements, draft model MOUs for cross-border cooperation, interview supervisory agencies, and propose legislative templates for liability and consumer protection safeguards.

20. Bank fiduciary duties in the era of embedded AI agents advising customers across jurisdictions

We propose research questions: 1) How do banks’ fiduciary or suitability duties extend to AI agents that autonomously advise retail clients? 2) What disclosure, oversight, and redress duties should apply when AI agents operate continuously across multiple regulatory regimes? 3) How should accountability be allocated between banks, AI vendors, and supervising authorities?
We outline how to work on this: We will analyze fiduciary doctrine, conduct comparative study of AI governance guidance, run controlled experiments on AI advice outcomes, and propose legal standards for oversight, audit trails, and cross-jurisdictional accountability.

21. Legal treatment of tokenized retail deposits: reconciling deposit insurance, custody law, and programmable features

We, TopicSuggestions, investigate how existing deposit insurance schemes and custody regimes apply when banks issue tokenized, programmable retail deposits on permissioned ledgers.
We ask: How do deposit insurance definitions cover tokens with embedded smart-contract rules? We ask: What custody duties arise for banks that hold private keys on behalf of depositors? We ask: How should insolvency priorities be adapted for programmable deposit features (e.g., time-locks, partial auto-redemption)?
We outline: We will map statutory deposit-insurance texts and custody laws across three jurisdictions, code key smart-contract features into a taxonomy, simulate failure scenarios, and propose statutory amendments and model contract clauses. We will combine doctrinal analysis with scenario-based normative design and stakeholder interviews with regulators, banks, and custodians.

22. Algorithmic credit denial as regulatory harm: attributing legal responsibility across model providers, banks, and cloud hosts

We, TopicSuggestions, probe who bears legal responsibility when algorithmic decisions provided by third parties lead to discriminatory or unlawful credit denials.
We ask: How can liability be allocated among banks, model vendors, and infrastructure providers under consumer-protection and anti-discrimination laws? We ask: What contractual and supervisory tools can prevent regulatory gaps? We ask: How do cross-border supply chains affect enforcement and discovery?
We outline: We will perform comparative statutory and case-law research, analyze vendor contracts and SLAs, build a liability-allocation framework, and test it via hypothetical litigation pathways and regulatory compliance checklists. We will interview compliance officers and legal counsels to validate practicality.

23. Cross-border resolution of banks with crypto-asset custodial arms: coordination gaps in bail-in and priority rules

We, TopicSuggestions, examine resolution challenges when a bank group with traditional deposits also operates crypto-asset custodial services in multiple jurisdictions.
We ask: How do bail-in tools interact with custody law across jurisdictions where assets may be segregated, comingled, or tokenized? We ask: What conflicts arise in recognition of foreign resolution measures against crypto-custody claims? We ask: Which coordination mechanisms reduce systemic contagion?
We outline: We will map insolvency and resolution regimes, collect cross-border custody contracts, run legal conflict-of-law analyses, and propose model MOUs and statutory recognition clauses. We will simulate multi-jurisdictional resolution through role-play scenarios with insolvency practitioners.

24. Duty of care for banks using consumer biometric identifiers under privacy, AML, and banking secrecy regimes

We, TopicSuggestions, ask how banks’ use of biometric authentication intersects with privacy rights, anti-money-laundering obligations, and traditional banking secrecy.
We ask: What is the bank’s duty of care in storing, sharing, and securing biometric templates? We ask: How should regulators balance AML-driven data sharing with biometric data protection? We ask: What liability arises from false-matching and exclusionary harms?
We outline: We will review privacy statutes, AML guidance, and relevant case law; conduct a risk-assessment framework for biometric data flows; propose technical-legal safeguards (e.g., template non-reversibility standards) and supervisory checklists; and validate with vendor and regulator interviews.

25. Legal enforceability of automatic netting across on-chain and off-chain claims in syndicated loans

We, TopicSuggestions, explore whether and how automatic netting and set-off clauses can be enforced when parts of syndicated loan exposures are tokenized on ledgers while others remain in traditional form.
We ask: What legal principles determine enforceability of cross-ledger netting in insolvency? We ask: How should inter-creditor agreements be drafted to allow seamless on-chain/off-chain enforcement? We ask: What role can smart contracts play without undermining statutory insolvency protections?
We outline: We will analyze netting laws, insolvency stay provisions, and precedents; create drafting templates for inter-creditor and agent agreements; test enforceability through legal opinion modeling and simulated insolvency proceedings across jurisdictions.

26. Banking regulation for delegated credit via decentralized autonomous organizations (DAOs): licensing and oversight models

We, TopicSuggestions, assess regulatory approaches to DAOs that delegate lending decisions or fund distribution but rely on chartered banks for settlement or custody.
We ask: When does a DAO’s lending activity trigger bank licensing or delegated-activity restrictions? We ask: How can supervision and AML controls be practically applied to hybrid DAO-bank arrangements? We ask: What compliance architectures reconcile decentralization with fiduciary duties?
We outline: We will map DAO governance forms to existing regulatory categories, propose licensing thresholds and supervisory tools (registry, compliance APIs), and model regulatory sandboxes. We will consult with fintech regulators and DAO governance practitioners to refine proposals.

27. Climate-linked contingent capital instruments: legal design for triggers tied to regulatory climate stress tests

We, TopicSuggestions, design legal frameworks for contingent capital that converts or absorbs losses when a bank fails climate stress-test thresholds imposed by regulators.
We ask: How do we draft objective, observable triggers linked to supervisory climate scenarios without undermining contractual certainty? We ask: What disclosure and consumer-protection issues arise for retail-holdings of such instruments? We ask: How do triggers interact with resolution and bail-in frameworks?
We outline: We will coordinate sovereign and bank-level stress-test metrics with instrument design, draft sample prospectus language and ISDA-style fallback provisions, perform regulatory-compatibility analysis, and engage with issuers and supervisors through roundtables.

28. Competitive neutrality obligations of public banks in lending platforms: antitrust and state-aid perspectives

We, TopicSuggestions, investigate legal obligations for public or state-owned banks that operate digital lending platforms competing with private fintech lenders.
We ask: What competitive-neutrality duties do public banks owe under domestic antitrust and international state-aid rules? We ask: How should platform pricing, data access, and referral practices be regulated to avoid market distortion? We ask: What enforcement mechanisms fit this hybrid regulatory problem?
We outline: We will synthesize antitrust, public-bank statutes, and state-aid jurisprudence; run case studies of public-bank platform behavior; propose compliance rules and monitoring benchmarks; and test recommendations with policymakers.

29. Regulatory treatment of interbank exposure via algorithmic market-making bots: margin rules and conduct obligations

We, TopicSuggestions, study how algorithmic market-making deployed by banks creates novel interbank exposures and what prudential and conduct rules are needed.
We ask: How do existing margin and capital rules capture algorithmic counterparty exposures that fluctuate millisecond-by-millisecond? We ask: What best-practice conduct and logging duties should apply to algorithmic market-making to prevent systemic flash events? We ask: How do we define and measure on- vs off-balance-sheet algorithmic contagion?
We outline: We will model exposure profiles using high-frequency simulation, map prudential frameworks to simulated exposures, draft supervisory guidance on algorithmic risk controls, and recommend audit and telemetry standards for regulators.

30. Legal frameworks for bank-facilitated access to digital identity ecosystems: interoperability, liability, and consumer redress

We, TopicSuggestions, analyze the legal architecture when banks act as fiduciaries or gatekeepers in national or cross-border digital identity ecosystems used for KYC and transactions.
We ask: What interoperability obligations should banks accept when participating in public-private identity networks? We ask: How should liability and redress be allocated for mis-identification, data breaches, or identity fraud? We ask: What consumer-consent regimes are required for cross-border identity portability?
We outline: We will conduct comparative law analysis of identity frameworks, propose model participation agreements, create liability-allocation templates, and simulate breach and dispute-resolution pathways to recommend statutory or regulatory safeguards.

31. Regulatory arbitrage and systemic risk from cross-border “banking-as-a-service” sandboxes

We identify the following research questions: 1) How do cross-border BaaS sandbox arrangements enable regulatory arbitrage among host and home jurisdictions? 2) What are the measurable channels by which sandboxed BaaS firms transmit systemic risk to incumbent banks and payment systems? 3) Which safeguards in sandbox design effectively limit contagion without stifling innovation?
We outline the method: We will map regulator filings and sandbox cohorts across jurisdictions, conduct interviews with sandbox supervisors and BaaS providers, collect incident and failure data, and run comparative case studies and network contagion simulations to derive policy recommendations.

32. Enforceability of blockchain-native syndicated loan documentation in cross-border insolvency

We identify the following research questions: 1) Under what jurisdictional regimes are tokenized loan instruments and on-chain assignment mechanisms recognized as enforceable security interests? 2) How do smart-contract execution rules interact with insolvency stay provisions and creditor priority in cross-border workouts? 3) What drafting standards minimize legal uncertainty for syndicated lenders using distributed ledger settlement?
We outline the method: We will perform doctrinal analysis of statutes and case law in representative jurisdictions, draft model smart-contract fallback clauses, and run legal-scenario simulations with practitioners to test enforceability outcomes.

33. Bank capital and liquidity effects of tiered versus non-tiered retail CBDC holdings

We identify the following research questions: 1) How do different CBDC remuneration and tiering regimes alter bank deposit flight and capital adequacy ratios under stress? 2) What are the dynamic effects on maturity transformation and interbank markets? 3) Which regulatory adjustments (e.g., reserve requirements, capital add-ons) mitigate unintended bank fragility?
We outline the method: We will build an agent-based banking system model calibrated with bank balance-sheet data, simulate tiered and non-tiered CBDC rollouts under macro shocks, and perform sensitivity analysis to recommend supervisory responses.

34. Explainability mandates for AML AI: accuracy, compliance, and operational trade-offs

We identify the following research questions: 1) What is the measurable trade-off between model explainability constraints and AML detection performance in production settings? 2) How do explainability requirements affect false-positive rates, investigator workload, and regulatory risk? 3) Which explainability techniques satisfy supervisory auditability while retaining efficacy?
We outline the method: We will run controlled experiments comparing black‑box and explainable ML models on anonymized AML datasets, measure ROC and operational metrics, conduct surveys of compliance teams, and develop a compliance‑oriented explainability framework.

35. Risk-weighting of climate-resilient mortgage pools in green securitizations

We identify the following research questions: 1) How should regulators calibrate risk weights for securitized mortgage pools labeled “climate-resilient” given correlated physical and transition risks? 2) What empirical differences in default and severity emerge between climate-resilient and conventional mortgage pools under stress scenarios? 3) How would different risk-weight regimes alter bank incentives to supply green mortgages?
We outline the method: We will combine property-level climate exposure data with loan performance histories, run stress-test econometrics on securitized pools, and simulate capital-cost-driven origination responses under alternative risk-weight rules.

36. Allocation of cyber-insurance recoveries in bank resolution and creditor hierarchies

We identify the following research questions: 1) Should cyber‑insurance proceeds be treated as estate property available to all creditors or be ring-fenced to operational recovery? 2) How do different allocation rules affect loss-absorbing capacity and moral hazard in banks? 3) What contractual and statutory drafting can harmonize cyber-insurance with resolution frameworks?
We outline the method: We will analyze insurer contracts and resolution statutes, construct resolution-case simulations with varied allocation rules, and interview resolution authorities and insurers to propose best-practice clauses.

37. Central bank use of transaction-level payment data for macroprudential supervision under privacy constraints

We identify the following research questions: 1) What privacy-preserving analytics (e.g., differential privacy, secure multiparty computation) retain sufficient signal for macroprudential indicators? 2) How much does transaction-level data improve early-warning models relative to aggregate series? 3) What legal and institutional architectures enable safe data access by central banks?
We outline the method: We will prototype privacy-preserving aggregation methods on synthetic transaction datasets, backtest early-warning indicators, and perform legal mapping and stakeholder interviews to design governance models.

38. Transmission of monetary policy through peer-to-peer lending platforms in negative and near-zero rate regimes

We identify the following research questions: 1) How do P2P platform yields and borrower demand respond when conventional bank deposit rates hit floor or go negative? 2) To what extent do P2P platforms substitute for bank credit and affect overall credit elasticity to policy rates? 3) What regulatory frictions alter this transmission channel?
We outline the method: We will assemble loan-level P2P data across policy-rate cycles, estimate interest-rate pass-through elasticities, and run counterfactuals using structural models to assess systemic implications and regulatory levers.

39. Long-term impacts of embedded financial-literacy nudges in online banking on consumer indebtedness

We identify the following research questions: 1) Do persistent, context-aware nudges in banking apps reduce long-term rolling unsecured debt and toxic credit usage? 2) Which nudge designs (feedback, default opt-outs, framing) produce durable behavioral change across demographics? 3) How do nudges interact with credit-supply responses from banks?
We outline the method: We will design and implement randomized controlled trials with partner banks over multi-year horizons, analyze account- and credit-report outcomes, and use heterogeneous treatment-effect estimation to inform scalable design.

40. Quantifying correspondent-banking de-risking caused by cross-border data localization laws and mitigation policies

We identify the following research questions: 1) How do data localization and cross-border access restrictions correlate with reductions in correspondent-banking links and trade finance flows? 2) Which types of localization (data residency, access denial, encryption export controls) drive the most de‑risking? 3) What policy remedies (safe-harbor frameworks, encrypted audit channels) effectively restore correspondent connectivity?
We outline the method: We will merge SWIFT/correspondent network data with country-level localization statutes, run panel regressions controlling for sanctions and macro factors, perform network-decomposition to quantify link loss, and interview compliance officers to evaluate mitigation strategies.

41. Legal Accountability for Bank-Owned AI Trading Agents

We propose research questions: How do existing fiduciary and market-manipulation doctrines apply when a bank’s autonomous trading agent executes harmful strategies? What standards of negligence or strict liability are appropriate for developers, model trainers, and the bank as principal? How should disclosure and audit requirements be structured to allocate responsibility across human and algorithmic actors?
We outline an approach: We will conduct doctrinal analysis of securities and banking liability cases, map regulatory texts to algorithmic decision points, run interviews with compliance officers, and construct hypothetical fact patterns to test liability regimes across jurisdictions.

42. Deposit Stability and Bank Run Law in a Central Bank Digital Currency (CBDC) Environment

We propose research questions: How does retail CBDC availability change legal definitions of “deposit” and the sovereign backing obligations of commercial banks? What legal tools remain effective for preventing runs when digital switching costs fall to near zero? How should lender-of-last-resort and deposit insurance frameworks be reimagined under simultaneous bank and CBDC liquidity stresses?
We outline an approach: We will compare statutory deposit regimes, model depositor behavior under different CBDC designs, analyze central bank policy papers, and develop policy-recommendations grounded in comparative law and game-theoretic simulation.

43. Cross-Border Bank Resolution for Assets Tokenized on Permissioned Blockchains

We propose research questions: How do existing cross-border resolution rules interact with tokenized bank assets held on permissioned ledgers spanning multiple legal regimes? Which legal principles should govern recognition, transfer, and stay-of-claims for tokenized claims during bank insolvency? What registry designs or private ordering mechanisms reduce conflict among resolver jurisdictions?
We outline an approach: We will map token governance rules to insolvency doctrines, review recent crisis playbooks, interview practitioners in tokenized asset platforms, and produce model clauses and treaty-level options for harmonized recognition.

44. Regulatory Duty to Implement Quantum-Resistant Cryptography in Banking Systems

We propose research questions: At what trigger point does a bank incur a regulatory or fiduciary duty to migrate to quantum-resistant cryptography? How should transitional liability for legacy-key compromise be allocated among banks, cloud providers, and software vendors? What standards should supervisors adopt to certify “quantum-safe readiness”?
We outline an approach: We will analyze supervisory guidance and prudential law, survey banks’ cryptographic inventories, propose a risk-based compliance timeline, and draft sample supervisory expectations and contractual clauses for vendor obligations.

45. Legal Limits on Banks’ Use of Biometric Data for Cross-Border AML/KYC Screening

We propose research questions: How do divergent biometric privacy regimes affect banks’ legal ability to use and transfer facial or fingerprint data for cross-border AML screening? What minimum governance and consent mechanisms reconcile AML imperatives with data-subject rights? How should liability be apportioned if biometric matching leads to wrongful freezing or discriminatory outcomes?
We outline an approach: We will perform comparative statutory and regulatory mapping, analyze human-rights and privacy jurisprudence, run scenario-based tests with biometric matching error rates, and propose model policies and contractual safeguards for multinational banks.

46. Bank Underwriting Liability for Greenwashing in Sustainable Finance Instruments

We propose research questions: When does a bank’s role as underwriter or arranger create actionable liability for greenwashing claims tied to sustainability-linked bonds or loans? What disclosure, due-diligence, and warranty standards should attach to bank-issued sustainability labels? How can contractual risk-allocation and regulatory enforcement be balanced to deter misrepresentations without stifling market innovation?
We outline an approach: We will analyze securities-liability precedents, survey market practices for green verification, interview rating agencies and counsel, and design a graduated compliance framework including audit trails and indemnity structures.

47. Legal Architecture for Programmatic Interbank Payment Finality Using Smart Contracts

We propose research questions: How must existing payment-finality laws and settlement finality regulations be adapted to accommodate programmatic smart contracts that automatically net, re-route, or reverse payments across banks? What insolvency and priority consequences arise from conditional smart-contract-triggered transfers?
We outline an approach: We will map smart-contract states to legal finality events, test interoperability with payment-system rules (RTGS, CLS), consult central banks and clearing houses, and draft statutory amendments and private-law fallback mechanisms.

48. Fiduciary Duty Tensions in Banks’ Proprietary Use of Customer Behavioral Data for Personalized Pricing

We propose research questions: Does a bank’s use of proprietary aggregated and individual behavioral data to set differentiated pricing create new fiduciary or unfair-dealing obligations toward depositors and borrowers? What transparency and consent regimes are legally required when pricing algorithms use sensitive inferences (health, employment instability)?
We outline an approach: We will combine doctrinal review of fiduciary and consumer-protection law, empirical analysis of pricing discrimination risks, stakeholder interviews (consumer groups, banks), and propose regulatory guardrails and contractual notice templates.

49. Legal Status and Contagion Risk of Securitized Climate-Transition Assets on Bank Balance Sheets

We propose research questions: How should securitized instruments tied to climate-transition projects (e.g., carbon-capture revenues, energy-transition tax credits) be treated under prudential capital rules and bail-in regimes? What legal mechanisms mitigate cross-default contagion when transition assets devalue rapidly under regulatory or technological shocks?
We outline an approach: We will review securitization law and prudential frameworks, stress-test hypothetical transition-asset portfolios, model contagion pathways, and recommend structural protections (waterfalls, triggers, regulatory buffers).

50. Legal Frameworks for Bank Custody of Decentralized Finance (DeFi) Derivatives Exposures

We propose research questions: What custody, segregation, and netting rules should apply when banks hold exposures arising from DeFi derivative positions (e.g., perpetual swaps collateralized by tokenized assets)? How should prudential supervision adapt to real-time margining and oracle failures that create rapid legal-technical disputes?
We outline an approach: We will map DeFi protocols’ mechanics to custody and trust law, analyze margin and close-out netting under insolvency law, simulate oracle-failure scenarios, and draft supervisory guidance and contractual annexes for custodial arrangements.