Lloyds Banking Group is to pay fines totalling £218 million to British and US authorities after it became the latest lender to be punished over the rigging of interest rate benchmarks.

The group said the manipulation took place between May 2006 and 2009, adding that those involved have either left the group, been suspended or are subject to disciplinary proceedings.

Barclays was the first to settle Libor rate-rigging claims, paying £290 million in penalties to US and UK regulators in June 2012, while state-backed Royal Bank of Scotland was hit with a £391 million settlement.

Around £70 million of the fine from Britain's Financial Conduct Authority relates to attempts by Lloyds to manipulate the fees payable to the Bank of England for participation in a taxpayer-backed government scheme designed to support the country's banks during the financial crisis.

The £105 million total fine from the FCA is the joint third highest ever imposed by the regulator or its predecessor, the Financial Services Authority, and the seventh penalty for Libor-related failures.

Whilst the Libor misconduct is similar to other institutions, the rigging of the Bank of England's Special Liquidity Scheme has not been seen before.

Lloyds will pay the Bank £7.8 million in compensation for the reduction in the amount of fees received by the central bank as a result of the manipulation.