Prerequisites for the Assessment of Administrative Pecuniary Penalties Applied to Domestic Banks under the Provisions of the Act of 29 August 1997, Banking Law

Abstract

Pursuant to art. 138 sec. 3c of the Banking Law, the Polish Financial Supervision Authority (PFSA), determining the amount of the pecuniary penalty under art. 138 sec. 3 point 3a and sec. 3b of the Banking Law, takes into account the seriousness of the violation and its duration, the reasons for the violation, the financial situation of the bank on which the penalty is imposed, and the bank’s prior violation of the provisions referred to in art. 138 sec. 3 of the Banking Law. Regulation of art. 138 sec. 3c of the Banking Law should be perceived primarily through the prism of its guarantee function, that is, as an instrument ensuring that the administrative pecuniary penalty applied by the PFSA against domestic banks under art. 138 sec. 3 point 3a of the Banking Law will be a penalty that meets the requirement of proportionality. It is equally important that the PFSA gives each of these premises the appropriate power, so that there is no situation in which the mitigating circumstances will be established, but in practical terms they will not be taken into account and will not have a significant impact on the administrative penalty.