BNP Paribas SA sought to allay concerns about its ability to weather a landmark $9 billion settlement with U.S. authorities, saying it has ample cash to cover penalties and faces no urgency to boost its capital cushion, the Wall Street Journal reported today. BNP Paribas Chief Financial Officer Lars Machenil said the French bank was "in no rush" to increase its core tier-one capital ratio — a key measure of a bank's financial health — even after agreeing to pay the record penalties as part of a U.S. sanctions case. BNP Paribas said yesterday that the penalties would shave just a little over half a percentage point from its core tier-one capital ratio, bringing it down to about 10 percent at the end of the second quarter. BNP Paribas, France's largest listed bank by assets, pleaded guilty Monday to breaching U.S. sanctions against Sudan, Iran and other countries. U.S. authorities also imposed a year-long ban on the bank's dollar-clearing functions — primarily related to oil and gas businesses — through its New York branch.
