The Europe Union’s banking regulator has claimed “significant progress” has been made in strengthening the Euribor benchmark borrowing rate against potential manipulation by traders.
The European Banking Authority (EBA), the London-based regulator of EU-based lenders, said several steps had taken to improve the setting process, including reducing the influence of rate-submitting banks, cutting the number of published rates, and putting in place a stricter code of conduct.
Changes to Euribor come after the European authorities in December fined eight banks, including Barclays and Royal Bank of Scotland, for their involvement in attempting to rig rates.
Barclays was exempted from paying any of what would have been a €690m (£xxxm) penalty due to its cooperation with the investigation, while RBS was forced to pay a fine of €391m.
The EU actions are part of a global investigation into rate-rigging, with the US and British authorities already having taken action against several banks after hitting Barclays with a £290m fine in June 2012 for its attempt to manipulate Libor.
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