Ms. Considine, the banking superintendent, said her department "intends to monitor the Bank of New York's adherence to these commitments through a variety of means, including the examination process, periodic reporting requirements and the application process."

At this moment the president of the central bank, Francisco M. Guerrero Prats, and the banking superintendent, Alberto Elías Atallah, were replaced - though hardly demoted.

Julio Cross, the new banking superintendent, said the government is "determined to follow this through to the end."

Mr. Levin, the former banking superintendent of New York State, was nominated for the post last week by Gov. George E. Pataki of New York.

He was named the Pataki administration's first banking superintendent in 1995.

Ms. Taylor, who currently oversees financial services related to regulatory agencies, would earn $127,000 annually as the banking superintendent.

California's banking superintendent also approved the deal.

But late yesterday, the Banking Department released letters from Derrick D. Cephas, the banking superintendent, to Republic and Green Point clarifying the terms under which such a payment could be made.

And recently, Ms. Taylor, who is the state's banking superintendent, has found herself in an uncomfortable spotlight.

Richard H. Neiman, a banking executive, will be nominated to become banking superintendent; State Senate approval is needed.