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Press Release
Published March 28, 2018
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Shoko Chukin Bank reports more misconduct

Date: March 28, 2018
Categories: Oprisk, riskregulation, Risk and Regulation
Keywords: Shoko Chukin Bank

Shoko Chukin Bank said that it has discovered 577 more cases of misconduct, including 23 under a government-backed scheme for loans to small businesses in externally caused crisis, bringing the total to 5,538, including those revealed last October.

The government-affiliated lender said it will strictly punish the officials involved under its internal rules.

The number of cases linked to lending to support business growth and launches under a Bank of Japan program increased from eight to 481, including negligence in checking loan recipients’ business plans.

The latest announcement newly revealed that improper operations were also conducted at Shoko Chukin Bank under nine prefectures’ lending facilitation systems. Thirteen such cases were reported.

Outside its lending operations, the bank found 23 more cases of irregularities in its monthly survey of small businesses, including the fabrication of survey responses, bringing the total to 165 cases. The survey was suspended in October and is now set to be scrapped, it said.

In the wake of the scandal, Prince Hotels Inc. executive Masahiro Sekine, hailing from Mizuho Financial Group Inc., has been appointed to replace Kenyu Adachi, former vice minister of economy, trade and industry, as president of Shoko Chukin Bank.

Re-disseminated by The Asian Banker from The Japan News