The New York Post reports that the U.S state Department of Financial Services, headed by Benjamin Lawsky, is focusing on how long of a grace period to allow the bank before dropping the hammer and barring it from clearing transactions in US dollars — the lifeblood of the bank, according to people familiar with the matter.
The ability to process and move around money in the US currency, or dollar clearing, is “central” for BNP Paribas, said Erin Davis, a banking analyst at Morningstar.
'The real question is if they’re not able to transact dollar payments', she told the newspaper. 'That’s a very critical underlying service for most of their corporate customers'.
A phase-in period would likely allow the bank to complete transactions that are already taking place, she said.
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