RBS pays £900,000 fine for Australian rate rigging

Royal Bank of Scotland has been fined for a third time for rate manipulation
Royal Bank of Scotland has been fined for a third time for rate manipulation
CARL COURT/AFP/GETTY IMAGES

Australian regulators have fined Royal Bank of Scotland nearly £900,000 after the bank admitted its role in attempts to manipulate the country’s equivalent of the Libor benchmark borrowing rate.

The taxpayer-backed lender agreed to make a “voluntary contribution” to financial literacy projects in Australia after investigators found evidence that RBS had made submissions to the Australian Bank Bill Swap Rate (BBSW) with the intention of moving it in favour of its own trading positions.

The fine is the third for RBS over rate manipulation after the bank paid £390 million to settle with the UK and US authorities last February and a further £324 million to reach a deal with the European Commission in December.

The Australian Securities & Investments Commission (ASIC) said RBS had