The Serious Fraud Office (SFO) is investigating the Bank of England over funds provided to banks during the 2007/8 financial crisis through so-called “liquidity auctions,” it confirmed yesterday.

The auctions saw cash-strapped banks being invited to “bid” for funding from the Bank of England in exchange for collateral, in an effort to keeping markets moving at the height of the financial crisis.

It is unclear whether bank employees are suspected of involvement in any attempt to rig the auctions, which were used prior to the launch of quantitative easing in 2009.

The bank held an independent inquiry last year, conducted by Lord Grabiner QC, before being referred to the SFO in November.

A spokesman said: “The SFO can confirm it is investigating material referred to it by the Bank of England con

cerning liquidity auctions during the financial crisis in 2007 and 2008.”

In a statement the Bank of England said: “Following the confirmation by the Serious Fraud Office that it is investigating material referred to it by the Bank of England, the bank can now confirm that it commissioned Lord Grabiner QC to conduct an independent inquiry into liquidity auctions during the financial crisis in 2007 and 2008.

“Following the conclusion of that initial inquiry, the bank referred the matter to the SFO on November 20 2014. Given the SFO investigation is ongoing, it is not appropriate for the Bank to provide any additional comment on the matter at this time.”

Treasury committee chairman Andrew Tyrie MP said: “The bank referred this to the SFO when Lord Grabiner’s initial findings were made clear to them.

“This was the right thing to do. I was informed about the referral on November 21 2014.

“We must now await the outcome of the SFO’s work. The sooner their findings are published, the better.”