Suruga Bank Lending Irregularities Deemed Systemic Problem

Economy

Numazu, Shizuoka Pref., Sept. 7 (Jiji Press)--A third-party panel set up to investigate lending irregularities at Suruga Bank <8358> said in a report Friday that a considerable number of its officials were involved in the systemic misconduct.

The panel said that the officials involved include a former managing director, and that document falsification and other irregularities were rampant in lending for real-estate investments.

"We regard this as a systemic problem," the panel's chair, Naoto Nakamura, told a press conference in the central Japan city of Numazu, Shizuoka Prefecture.

In the report, the panel blamed the Numazu-based regional bank's management for lack of due diligence.

Five executives of the bank, including Chairman Mitsuyoshi Okano, hailing from its founding family, and President Akihiro Yoneyama, resigned on Friday to take responsibility for the scandal. Director Michio Arikuni was promoted to president.

[Copyright The Jiji Press, Ltd.]

Jiji Press