By Swati Pandey and Vidya Ranganathan
SYDNEY/SINGAPORE, June 12 (Reuters) - Australian regulatorsare ramping up their investigation into the country's banks overfixing of the benchmark inter-bank interest rates andcurrencies, two sources with direct knowledge of the matter toldReuters.
The investigation is part of a series of reviews thatAustralian Securities and Investment Commission (ASIC) hasundertaken to uncover any misconduct in rates setting by banks.
Earlier this year, it censured French lender BNP Paribas after revealing its traders tried to influence thesetting of the inter-bank interest rates.
Global regulators have been reforming rate-setting practicesafter Barclays Plc, UBS AG, Royal Bank ofScotland Group Plc and others were hit with finestotalling billions of dollars for rigging the London InterbankOffered Rate, known as Libor.
Libor and other similar inter-bank rates are used to pricehome loans, credit cards and other financial products worthtrillions of dollars.
Last year, Australia scrapped its Bank Bill Swap ReferenceRate (BBSW) mechanism after an exodus of banks from the panelthat set the rate, the first major market to dismantle thetarnished structure.
In its latest round of investigations, ASIC has broadenedits inquiry seeking six to seven years of data from banks andasking for more detailed information, the sources said.
The sources, senior executives at Australian banks, did notwant to be identified as the investigation was not public.
"There is request for specific information by dates, timeframe and people. There is a mountain of information to share,"said one of the sources.
The investigation is an added cost burden on banks alreadyfeeling the pressure from a tighter capital regime beinginstigated under Basel III global banking regulations, thesource said.
ASIC said it was undertaking inquiries of BBSW panel membersbut declined to provide any details.
"Since mid-2012, ASIC has been undertaking inquiries of BBSWpanel bank members in relation to the integrity of their pastinvolvement in the BBSW submission process," it said in anemailed statement to Reuters.
"ASIC's inquiries in relation to the BBSW rate set areongoing and we do not propose to provide a running commentary." (Additional reporting by Sonali Paul in Melbourne; Editing byKim Coghill)
Barclays (BARC)
