Bank of France Says BNP Can Withstand U.S. Fine, Clearing Ban

June 30 (Bloomberg) -- BNP Paribas was charged in a criminal probe of U.S. sanctions violations, signaling the bank has resolved an investigation spanning seven years and will pay $8.8 billion, the largest fine for such a case in history. Julie Hyman reports on "Street Smart." (Source: Bloomberg)

BNP Paribas SA (BNP) can withstand the almost $9 billion fine and yearlong ban on clearing some dollar trades imposed by U.S. authorities, the Bank of France said.

The central bank’s regulatory arm “has examined the situation of BNP Paribas and concluded that the BNP Paribas Group has a solid solvency and liquidity position, which will allow it to absorb the anticipated consequences of this decision,” the Bank of France said in a statement today.

Related: BNP to Pay $8.8 Billion in Plea Deal Over Violation of Sanctions

French officials warned state and federal authorities that imposing disproportionate fines on France’s largest bank could harm the national economy and Europe’s banking system. BNP Paribas was under investigation for violating U.S. sanctions against blacklisted nations.

The Bank of France said the way the penalty has been structured will allow BNP to continue operations.

The regulator considers that “the present organization and controls enacted are adapted to the characteristics of its business, in particular its international activity,” the Bank of France said in the e-mailed statement. “Thus with all licenses and authorizations maintained, the BNP Paribas Group is in a position to continue its business in full compliance with all applicable laws.”

To contact the reporter on this story: Mark Deen in Paris at markdeen@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net Frank Connelly, Heather Smith

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