Seven banks have been fined a total of €1.7 billion by the European Commission for colluding to fix two key interest rates.

The competition law breaches concerned certain interest rate derivatives referenced to the London Interbank Offered Rate based on Japanese Yen (Yen LIBOR) and the Euro Interbank Offered Rate (EURIBOR).

RBS was one of seven banks and brokers implicated in respect of Yen LIBOR competition infringements and has agreed to pay a settlement penalty of €260,056,000 to resolve the investigation.

RBS was also one of seven banks implicated in the EURIBOR competition infringement and has agreed to pay a settlement penalty of €131,004,000 to resolve the investigation.

Philip Hampton, RBS Chairman, said: “We acknowledged back in February that there were serious shortcomings in our systems and controls on this issue, but also in the integrity of a very small number of our employees. Today is another sobering reminder of those past failings and nobody should be in any doubt about how seriously we have taken this issue.

“The RBS board and new management team condemn the behaviour of the individuals who were involved in these activities. There is no place for it at RBS.”