Mizuho Financial Group said on Monday that the chairman of its banking unit, Takashi Tsukamoto, will resign, while its president will take a six-month pay suspension, following a loans-to-mobsters scandal.
Pressure on Mizuho President Yasuhiro Sato mounted after Japan’s financial regulator told the bank to explain how and when top executives found out about its loans to crime groups.
Mizuho Financial Group said a former top executive knew it was lending to crime groups three years ago, reversing its stance that only compliance officials were aware and drawing further ire from the financial regulator.
Mizuho Financial Group's loan scandal deepened after the Japanese bank said a former top executive knew it was lending money to crime groups.
Mizuho Financial Group’s banking unit set up an internal committee and will assemble a panel of outside experts to improve compliance after it failed to act on loans made to crime groups.