Due to the profound effect financial systems have on social order, financial systems are required to be strictly supervised. However, financial products and their modes of operation are complicated and changeable and are in reality difficult for legislators to predict. As a result, the authority to legislate and monitor these systems is broadly given to the competent authority. By doing this however opportunities for abuse of administrative discretion can arise and might against the general principles of administrative law. Sub-paragraphs 3 and 4, paragraph 1, article 61-1 of the Banking Act provide that if there is a possibility that a Bank has violated laws and regulations, its Articles of Incorporation, or disturbed the sound operation [of the financial system], the competent authority may, depending on the situation, order the bank to discharge managers or staff members, or discharge directors and supervisors or suspend them from the performance of their duties for a specified period of time. According to paragraph 11 of article 3 of the Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of Banks, a person who is discharged from his position as a manager, director or supervisor by the competent authority pursuant to sub-paragraphs 3 and 4 of paragraph 1 of article 61-1 of the Banking Act shall not act as the responsible person of a bank for a period of five years. In this paper, the author discusses and analyzes the legality and adequacy of the discharge of the personnel of a financial institution by the competent authority and its legal effect, and offers suggestions on related issues.