Japan's financial watchdog said Tuesday it would probe the country's top three banks in the wake of a loans-to-mobsters scandal that has scarred the reputation of major lender Mizuho.
The Financial Services Agency (FSA) will look at Mizuho's business dealings as well as rivals Mitsubishi UFJ and Sumitomo Mitsui Banking Corp., an agency spokesman said, without disclosing further details.Jiji Press news agency said the widening investigation would probe a range of issues including the banks' risk management systems, while Japan's finance minister said earlier Tuesday that the watchdog must do a better job in weeding out corporate misdeeds.
The scandal has made headlines for weeks in Japanese media, and reportedly sparked a police investigation into corporate ties with organised crime.
The widening regulatory probe comes a day after a panel of lawyers hired by Mizuho to look into its links with organised crime said bank executives knew it was doing business with gangsters but failed to stop the practice.
Source: NewsOnJapan
The scandal has made headlines for weeks in Japanese media, and reportedly sparked a police investigation into corporate ties with organised crime.
The widening regulatory probe comes a day after a panel of lawyers hired by Mizuho to look into its links with organised crime said bank executives knew it was doing business with gangsters but failed to stop the practice.
Source: NewsOnJapan
