The Regulatory Power of the Banking Commission in Sanctioning Violations Under Law No. 23-09: Effectiveness of Supervision vs. Judicial Guarantees

Abstract

The banking system constitutes a fundamental pillar of the national economy, necessitating strict legal regulation and effective supervision to ensure its stability. Within this framework, Algerian Law No. 23/09 assigns the Banking Commission broad supervisory and disciplinary powers over banks and financial institutions. This study addresses the extent to which the Commission’s discretionary authority achieves a balance between effective regulatory control and the protection of defense rights under administrative judicial review. It adopts an analytical method through the examination of legal provisions governing the Commission’s powers, complemented by a descriptive approach to its supervisory and disciplinary mechanisms, and a comparative perspective inspired by French administrative jurisprudence. The findings reveal that the Commission exercises its control through document-based and on-site inspections and applies a graduated system of preventive measures and disciplinary sanctions. While the legislator has established procedural guarantees, including the right of defense and judicial appeal, the wide scope of discretionary power may lead to potential misuse. Moreover, judicial oversight remains limited, particularly regarding the assessment of proportionality and appropriateness of sanctions. The study concludes that achieving an effective balance requires strengthening procedural safeguards and expanding judicial control to ensure that the Commission’s powers are exercised in line with legality and the protection of rights.