Federal Reserve stops further expansion of HBL business in New York

KARACHI: Habib Bank Limited (HBL) President Noman Dar said that America’s Federal Reserve had stopped HBL from further expanding business in New York and directed to first upgrade auto stad system.

Talking to Daily Jang on Friday, he said that HBL’s New York branch had been doing dollar payment business. There is no business of booking loan and other products there. HBL’s business had expanded over the last few years. However, bank’s auto stad system could not be upgraded thus the Federal Reserve had stopped the bank from further expanding business.

Dar said that the bank had taken several measures to upgrade the system and a consultant has been appointed in this connection.

According to sources in the banking sector, the Federal Reserve’s action was a normal practice as it had taken various actions against over 45 international banks for violating the banking laws during 2015. These banks also included Deutsche Bank, which was fined whereas HBL had not been treated this way.