By-laws of the Deposit Protection Fund

eport conflicts of interest to their chair without delay. The respective chair
shall disclose their own conflicts of interest to their deputy chair. The chair in
question or, if they are prevented from doing so, their deputy, shall decide what
measures should be taken to prevent, resolve or mitigate conflicts of interest.
Section 12 – Disciplinary measures
1. The Banking Association can impose disciplinary measures pursuant to
specific provisions within this Section 12 on a bank that seriously breaches its
duties towards the Banking Association or violates a provision in the Banking
Association By-laws, these By-laws or a resolution made by a responsible body
with the Banking Association. The choice of disciplinary measures is to be
determined based on the type and severity of the breach of duty.
2. Disciplinary measures are:
(a) issuance of a formal summons to the executive bodies and principal
shareholders of the bank concerned to discuss the breach of duty
(subsection 5)
(b) issuance of an official warning (subsection 6)
(c) imposition of fines (subsection 7) and
(d) exclusion from participation in the Fund (subsection 8).
3. Disciplinary measures in the form of imposing fines (subsection 7) and exclusion
from participation in the Fund (subsection 8) may only be imposed if the bank
(a) has committed not only a non-material breach of significant obligations
towards the Banking Association, particularly obligations arising from or in
connection with the present By-laws, or
(b) has otherwise committed a material and sustained breach of a provision of
44 By-laws Section 11 – Section 12