German regulators Bafin and Bundesbank are conducting an in-depth probe of Deutsche Bank AG's accounts over allegations the lender failed to correctly value a derivatives portfolio, two people familiar with the matter said on Thursday.

They said Germany's central bank was is reacting to allegations that Deutsche Bank misvalued credit derivatives, allowing the bank to hide up to $12 billion in losses.

Deutsche Bank, which has said these allegations were unfounded, declined to comment.

The Bundesbank said it could not provide information on measures that affect individual institutions.

"Generally, you can assume that we pursue any allegations that are made, to assess their validity," a Bundesbank spokeswoman said.

(Reporting By Alexander Huebner and Kathrin Jones; writing by Edward Taylor)