Mizuho Bank said Thursday it has replaced its executive in charge of legal compliance for failing to deal with the bank’s lending to criminal and other antisocial groups.
The executive, who had held the position since April last year, did not report the loans or take measures to end them despite having knowledge of the borrowers.
One of its vice presidents has now taken the post and will be in charge of investigating the cases and taking disciplinary action.
The government’s Financial Services Agency found the problem during its inspection of Mizuho last December. The bank engaged in 230 transactions worth more than ¥200 million with “antisocial forces” but took no steps to prevent or break them off for more than two years, according to the FSA.
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