Suruga Bank Punishes 117 Employees over Loan Scandal

Economy Politics

Tokyo, Nov. 30 (Jiji Press)--Suruga Bank <8358> said Friday that it has punished a total of 117 executives and other employees, including by suspensions from duty and pay cuts, over a high-profile real estate investment loan scandal.

The Numazu, Shizuoka Prefecture-based bank revealed the punitive actions in a business improvement plan it submitted to the Financial Services Agency on the day.

In October, the FSA stopped the bank from providing fresh loans for six months, including for investments in share houses, due to rampant fraudulent operations at the bank.

Over the scandal, Suruga Bank has already decided that President Michio Arikuni will return 30 pct of his monthly pay until the next general shareholders' meeting.

In the improvement plan, the regional bank clarified its aim of ending management led by its founding family including former Chairman Mitsuyoshi Okano, which it blames as the root cause of the scandal.

[Copyright The Jiji Press, Ltd.]

Jiji Press