The German markets regulator BaFin today revealed it has imposed a €8.66 million administrative fine on Deutsche Bank AG.
According to BaFin, Deutsche Bank failed to introduce effective controls related to the Euro Interbank Offered Rate (EURIBOR).
The EURIBOR is a benchmark used in the financial industry.
The official statement said:
As a supervised contributor to EURIBOR, the bank at times did not have in place effective preventive systems, controls and policies.
The regulator said that its interference aims to prevent market manipulation and stressed the importance of regulation.
BaFin stated:
It requires contributors to have in place effective systems and controls. Contributors are natural or legal persons who contribute data for determining benchmarks. In the European Union, the Euro Interbank Offered Rate (EURIBOR) is used as benchmark, for example.
Breaches of the Benchmarks Regulation can result in a fine which can reach up to ten percent of the total turnover.
Response
Deutsche Bank has accepted the administrative penalty and had implemented measures to improve its controls, Reuters reported.
The bank also stated that it does not believe that the breaches have not led to incorrect rate submissions to the benchmark administrator.
