Record fines of €710 million for banks accused of manipulating ROBOR index
Competition authority imposed sanctions of 3.73 billion lei on financial institutions suspected of distorting the calculation of the reference interest rate through illegal data exchanges.
Record fines of €710 million for banks accused of manipulating ROBOR index
Ten credit institutions operating on the Romanian market have been sanctioned with cumulative penalties of 3.73 billion lei, approximately €710 million, after regulatory authorities found serious breaches of competition law.
The Competition Council leadership publicly presented the conclusions of an investigation that analysed how major banks influenced the calculation of the interbank rate. The investigation was launched three years ago, but specialists examined documents and transactions dating from 2018 onwards.
According to official explanations, the targeted financial institutions communicated data to each other that should have remained confidential, cooperating in the development of common reporting procedures. This coordination affected the transparency of the process through which the reference indicator for loans in national currency is established.
"We are not talking about a formal agreement, of a cartel type, but of a systematic exchange of information and standardised methodologies," said a representative of the authority. He added that, within the 30-minute reporting interval, each participant could observe the quotations transmitted by the others and could adjust their own offer.
The impact on borrowers exists, but is limited to certain categories of loans. Loans directly linked to the investigated index were the most exposed, whilst contracts based on the alternative indicator, calculated from actual transactions, were less vulnerable. The differences arising from the contested practices are measured in tenths of a percentage point.
The targeted institutions, among which are some of the largest banks in the system, rejected the accusations and announced they would challenge the decision in court. Some of them qualified the measure as lacking legal basis.
In parallel, a well-known lawyer specialised in banking law is advising consumers to take the credit institutions to court to recover the difference in interest.
Source: Digi24
Source: Digi24