Enlarge image
Deutsche Bank headquarters in Frankfurt am Main
Photo: Arne Dedert / dpa
The financial supervisory authority Bafin hums the Deutsche Bank a million dollar fine.
It is thus punishing deficiencies in internal controls in connection with the calculation of important reference interest rates.
Germany's largest financial institution had to pay 8.66 million euros because the institute, as the data supplier for the calculation of the Euribor, "temporarily did not have effective preventive systems, controls and strategies," said the Federal Financial Supervisory Authority (Bafin).
Like the Libor, the Euribor (Euro Interbank Offered Rate) is used as the basis for billions in banking transactions - from construction loans to complex derivative transactions.
A few years ago it was discovered that employees of several major banks around the world had been tricking the calculation of these reference interest rates for years in order to generate higher profits.
Deutsche Bank also had to pay several heavy fines in this context.
Bank accepts the fine
Since the beginning of 2018, the applicable rules have obliged the so-called contributors, i.e. those who provide data for calculating the Euribor, to ensure through internal controls and processes that there is no manipulation and that the data is reported on a valid basis.
According to the assessment of the banking supervisors at Deutsche Bank, this was temporarily not fulfilled in the audit period from 2019 to the beginning of 2020.
Deutsche Bank accepted the fine, said a spokesman.
At the same time, the bank had "no evidence that the fined facts led to an incorrect report to the administrator of the reference value."
The first measures to improve controls have been coordinated with the responsible supervisory authority and have already been implemented.
mamk / dpa