Suruga Bank Exec Led Lending Irregularities

Economy

Tokyo, Aug. 8 (Jiji Press)--A then executive officer of Japanese regional lender Suruga Bank <8358> led falsifications of loan application documents related to share-house investments, informed sources have said.

The then executive, who was in charge of sales, intimidated the bank's loan screenings department into passing applicants of loans to finance such investments, according to the sources.

In May, the bank denied its organizational involvement in the wrongdoing in a report on its internal probe into its lending irregularities.

The Financial Services Agency plans to impose tough administrative penalty on the bank, based in Numazu, Shizuoka Prefecture, central Japan, for a serious lack of governance.

A third-party panel of the bank comprising mainly lawyers is expected to draw up a report on its probe into the irregularities by the end of this month.

[Copyright The Jiji Press, Ltd.]

Jiji Press