Japan FSA Orders Seibu Shinkin to Improve Biz

Politics

Tokyo, May 24 (Jiji Press)--Japan's Financial Services Agency on Friday issued a business improvement order to Seibu Shinkin Bank for its flawed loan-screening system.

The small Tokyo lender was found to have extended loans to a crime syndicate-related borrower and provided fraudulent real estate loans.

Seibu Shinkin focused too much on profits and failed to secure a proper internal control system, the FSA said, ordering the lender to submit a business improvement report by June 28.

The bank's head, Kanji Ochiai, resigned on Friday to take responsibility. He was succeeded by executive Ichiro Takahashi.

At a press conference, Takahashi apologized for the scandals. He will take a 30 pct executive pay cut for three months.

[Copyright The Jiji Press, Ltd.]

Jiji Press