Germany’s financial regulator has imposed an administrative fine of $9.8m on Deutsche Bank for controls lapses associated with the Euribor interest rate.
According to BaFin, Deutsche Bank, which is a supervised contributor to Euribor, “at times did not have in place effective preventive systems, controls and policies”.
The regulator imposed the fine under the 2018 regulation, which is aimed at preventing manipulation of Euribor.
Euribor is the Euro Interbank Offered Rate benchmark derived from the average interest rate at which lenders borrow from one another.
Leading global banks such as UBS and JP Morgan along with Deutsche Bank have been fined for trying to manipulate the rates.
The banks use these rates to price their financial products such as student loans and complex derivatives.
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The German bank accepted the fine and has taken steps to boost its controls regarding Euribor.
Deutsche Bank has been fined for violations that occurred between April 2019 and April 2020, Reuters reported, citing sources.
The regulator found that certain processes to ensure the quality of data used to calculate the rate were flawed. The regulatory agency found that the bank lacked regular controls and other organisational precautions.
Earlier this year, Deutsche Bank was ordered by BaFin to implement measures to prevent money laundering.
In 2015, six global lenders were fined about 5.7bn by the UK and US regulators for manipulating the foreign exchange market.