Penalties

Pursuant to Article 55A of its Statute and Bank of Greece Governor's Act 2602/4 February 2008, the Bank of Greece imposes on supervised persons appropriate administrative penalties, as provided for by the applicable legislation on credit institutions, in case of violation of legal and regulatory provisions concerning the conduct of their activities or the obstruction of supervisory control. It may also impose the following administrative penalties:
 
- €20 million, the maximum penalty imposed in the form of a non-remunerated deposit with the Bank of Greece, in the event that the amount of the violation cannot be verified (this penalty is actually equivalent to the bank's loss of interest income, the level of which depends mainly on the opportunity cost of alternative investments);

- a fine of €2 million, imposed as one-off penalty in favour of the Greek State; and
 
- €3 million, the maximum penalty that may be imposed in case of relapse.

These penalties may be imposed in conjunction with other administrative penalties and corrective measures, pursuant to applicable laws.

Finally, Law 3601/2007 further specifies the Bank of Greece's exercise of the above power, under Article 55A of its Statute.