Law Commons^™

When The Borrower And The Banker Are At Odds: Arbitration And International Finance, William W. Park

Faculty Scholarship

Lenders and borrowers traditionally have gone before judges rather than arbitrators to resolve controversies arising out of international loan agreements. Arbitration has been relatively rare, even ill-favored, in financial dispute resolution. Except with respect to performance guarantees and securities, arbitrators seldom decide controversies arising out of financial transactions. The disfavored status of arbitration in banking contrasts sharply with arbitration's position as the preferred adjudicatory mechanism in trans-border commercial relationships.