• Kyodo


Loans screened by a credit company under Sumitomo Mitsui Financial Group Inc. are suspected to have been extended to people linked to organized crime and other antisocial forces, Sumitomo Mitsui President Koichi Miyata said Tuesday.

The loans screened by Cedyna Financial Corp. were extended by a bank outside the Sumitomo Mitsui group. Miyata did not disclose the value or number of transactions, saying the loans in question include some that can’t be confirmed as having been provided to antisocial forces.

The situation came to light as the bank that extended the loans asked Cedyna to try to determine whether they have gone to organized crime groups.

The loans will be terminated after checking the borrowers with a polie database and Sumitomo Mitsui, Miyata said.

According to Sumitomo Mitsui, Cedyna has dealings with 20 companies.

Sumitomo Mitsui plans to enhance the screening process of Cedyna by sharing its database with Sumitomo Mitsui Banking Corp. under its wing, as the mega-bank has more information about antisocial forces.

The revelation came after Mizuho Bank drew fire over its lending through group credit company Orient Corp. to people linked to crime syndicates, an incident that led the Financial Services Agency to launch investigations of Japan’s three largest banking groups earlier this month.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.