Karel Van Miert, the Competition Commissioner, said he had authorized the raids after complaints that banks were conspiring to fix fees on foreign exchange and international payments amid concerns that consumers are paying excessive charges.

Van Miert said: "There could have been agreements and co-operation between banks which could have gone as far as fixing of charges on change operations and costs on international payments after the introduction of the euro.

"We will see if procedures have been engaged in, which violate European competition regulations. It is a very clear warning. Competition must take place."

He named the banks as Deutsche Bank, Dresdner, Cr�dit Agricole, Soci�t� G�n�rale, Banca Commerciale Italiana, Cassa di Risparmio delle Province Lombarde, Banco Bilbao Vizcaya and Argentaria, Corp Bancaria de Espa�a.

The banks could face fines of up to 10 percent of their deposit base if officials uncover evidence of a cartel. Officials have also raided the European Banking Federation in Brussels in connection with their investigation.

News of the raids came at a special parliamentary hearing into alleged overcharging by banks. Christa Randzio-Plath, chairman of the parliamentary committee, said she had discovered that in Germany different banks were charging the same fees, and that the same went for France.

Officials are also looking into complaints that some banks are refusing to accept cheques denominated in euros. The Commission will investigate whether there is an understanding or cartel between banks to refuse such cheques.

Soci�t� G�n�rale last night confirmed it had been raided by two EU officials and a representative of the French Finance Ministry. The bank said it expected the investigation to last 48 hours. Deutsche Bank confirmed it had received a similar deputation, but denied all the charges.