Part 1 of this article concluded with the finding that the argument for extraterritorial application of a country's banking laws correlates with the weight and significance of the territorial links that connect a cross-border banking transaction with such country. This led to the obvious questions: How can the weight and significance of the potential territorial links be determined and which of the fractionalized parts of a business activity are relevant in defining the scope of international applicability of domestic banking law? Part 2 answers these questions by evaluating the potential territorial links based on the telos of the applicable laws. It develops a staggered solution to determine the extraterritorial reach of domestic banking law that is flexible enough to embrace the relevant circumstances of the case at issue and clear enough to provide for a high level of legal predictability.
