The Industrial Bank of Japan and several other major banks have repeatedly wined and dined executives and other high-ranking officials of the Bank of Japan, in addition to the BOJ official arrested March 11, sources said March 12.

Yasuyuki Yoshizawa, head of the Capital Markets Division of the BOJ's Credit and Market Management Department, was arrested on suspicion of accepting 4.3 million yen in bribes from two banks, mainly in the form of wining, dining and golf outings. Yoshizawa's superiors were entertained along with him when he held his previous position at the BOJ, the sources said. He is suspected of having been wined and dined on 89 occasions to the tune of 4.3 million yen, the sources said.

Each bank entertains BOJ officials ranking below the governor and vice governor at least four times a year, the sources said. Vice presidents and other bank executives also attend the sessions, they added. Banks pay about 100,000 yen per official for entertainment at high-class restaurants, as well as for golf games and souvenirs, the sources said.

A bank employee formerly in charge of BOJ relations said developing ties with the central bank is important because of its power in determining the amount and timing of BOJ loans to banks. "When a bank makes an error, such as in handling cash, a bank official in charge is called to the BOJ and must apologize," the employee said. "In such a situation, it is helpful if there is an acquaintance among BOJ officials."