Japan’s MUFG has agreed to a $33m settlement with the New York State Department of Financial Services (DFS).

The settlement resolves a lawsuit first filed by the bank against the New York regulator in 2017.

The move stemmed from DFS seeking authority over MUFG even after the bank converted its New York state-licensed branch to a federally-licensed branch.

The New York watchdog filed counterclaims.

The recent settlement prevents DFS from challenging the validity of the licences issued by the Office of the Comptroller of the Currency.

DFS superintendent Linda Lacewell said: “Today’s settlement reinforces the strength of our nation’s dual banking system and significantly reaffirms New York’s authority to vigorously protect our financial markets and consumers.”

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By GlobalData

Notably, DFS sued the federal government late last year in order to restrict granting of national bank charters to fintech firms.

Commenting on the latest move, MUFG said: “This settlement resolves the pending federal civil litigation in its entirety, and does not constitute a regulatory order or involve a monetary penalty.”

MUFG was lately in the limelight for raising its stakes in Indonesian lenders Bank Danamon as well as Bank Nusantara Parahyangan.

The Japanese firm recently also enabled biometric authentication for internet banking through the installation of Nok Nok S3 Authentication Suite.