July 29, 2012 / 4:48 PM / 5 years ago

Bafin widens scrutiny of German banks amid Libor: sources

2 Min Read

FRANKFURT (Reuters) - Markets regulator Bafin has extended its scrutiny of German banks by investigating more lenders following a global interest rate rigging scandal, sources have told Reuters.

Eight German banks, which participate or have participated in the rate for the euro zone, known as Euribor, were ordered to submit details of how they calculate the interest rate and monitor its mechanisms, according to the regulatory sources, who are familiar with the details of the investigation.

Bafin set a deadline of last Thursday for the submissions to be made but the results of the investigation are not yet known, the sources said.

It was not clear when the results of the probe would be available.

German banks participating in Euribor include Deutsche Bank (DBKGn.DE), Commerzbank (CBKG.DE), DZ Bank DGBGg.F, LBBW LBWGga.F, BayernLB BAYLB.UL, Helaba HLHTG.UL, NordLB NDLG.UL and Landesbank Berlin BEBGL.UL.

Bafin is already conducting a so-called special probe - the most severe form of investigation it can undertake - into Deutsche Bank over suspected manipulation of interbank lending rates.

Investigators in the United States, Europe and Japan are examining more than a dozen big banks over suspected rigging of the London Interbank Offered Rate (Libor).

The Libor rates, compiled from estimates by large banks of how much they believe they have to pay to borrow from each other, are used to determine interest rates on trillions of dollars worth of contracts around the world.

German magazine Der Spiegel reported on Sunday that Bafin was planning to raise the number of supervisors for Deutsche Bank to three or four from two.

Bafin declined to comment.

Reporting by Alexander Hübner und Till Weber, writing by Harro ten Wolde; Editing by David Cowell

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