Discretionary Powers of the State to Impose Administrative Sanctions to Economic Entities in the Lithuanian Financial Sector: From Administrative Implementation to Judicial Control

Abstract

This article examines the scope and limits of administrative discretion in the application of administrative liability to the economic entities in the financial sector, as well as its judicial oversight in Lithuania. Two opposing scholarly perspectives on discretion are outlined, followed by a distinction between administrative and judicial discretion as well as a formulation of the theoretical foundations and core elements of administrative discretion. Particular attention is given to the principle of proportionality, which serves as a key criterion for assessing both the proper exercise of administrative powers and their judicial review. Empirical findings indicate significant shortcomings in ensuring proportionality, revealing that current practices do not fully secure the objectives set by the legislator. Moreover, the analysis highlights instances where judicial control of administrative discretion is either insufficient or exceeds its boundaries, thereby undermining the essential elements of discretion. The article concludes that both administrative and judicial practices require refinement to strengthen proportionality, consistency, and adherence to the legislator’s intent in the application of administrative liability.