OSAKA — The arrest of former top executives of the failed Kofuku Bank is expected to unveil the dubious nature of the bank’s “family-run” business, which is believed common among many second-tier regional banks.

Osaka-based Kofuku was one of Japan’s 60 second-tier regional banks, which originally started as private lending associations. Kokumin Bank and Tokyo Sowa Bank, which also collapsed earlier this year, belong in the same category.

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