# enforcement and sanctioning powers

- Canonical URL: https://www.gerhardmerk.de/enforcement-and-sanctioning-powers
- Post ID: 604499
- Modified: 2026-09-07T19:47:59+00:00
- Language: en

## Definition

Enforcement and sanctioning powers are legal instruments through which a prudential supervisor responds to non-compliance. An enforcement measure directs an institution or, where the legal framework permits, another responsible person to remedy a breach or refrain from conduct that violates supervisory requirements. A sanction is punitive: it imposes a financial penalty on a supervised institution because those requirements have not been met. Enforcement is thus directed at securing observance, whereas sanctioning addresses the breach itself through punishment. The two powers may be exercised within the same supervisory regime but have different immediate purposes.

## Machine-readable

- Generator: Merk Knowledge 1.1.1