Many Suruga Bank Workers Might Be Aware of Loan Document Forgery

Economy

Numazu, Shizuoka Pref., May 15 (Jiji Press)--Suruga Bank <8358> said Tuesday that its documents on the screenings of loans related to share house investment have been manipulated or fabricated, and that quite a number of employees of the lender might have been aware of the misconduct.

The bank, based in the city of Numazu, Shizuoka Prefecture, central Japan, showed the findings in an outline of its in-house probe on the problem.

The regional lender will set up a panel comprising outside lawyers to conduct a further probe. It hopes that the third-party investigation will be completed by summer this year.

In the investment scheme, individual investors bought share houses using loans from Suruga Bank. Tokyo-based share house operator Smart Days Inc. rented all of them and paid rents promised in advance to the owners.

But the company, the operator of women-only share house units called "Kabocha no Basha" (Pumpkin Carriage), suspended rent payments due to the sluggish occupancy rates at the share houses and went bankrupt last month.

[Copyright The Jiji Press, Ltd.]

Jiji Press