Japan Press Weekly

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2013 October 9 - 15 [SCANDAL]

Mizuho Bank loans to crime syndicate called into question

Akahata editorial (excerpts)

One of Japan’s largest financial groups Mizuho Bank faced penalties over its continuous lending to crime syndicate members. Loans to crime syndicates such as “yakuza” run counter to banks’ social responsibility and betray the trust of the general public.

While people often have to wait for approval of housing or automobile loans, organized-crime group members have been able to get loans without delay.

Three years ago, Mizuho Bank looked at borrowers and found that it had provided more than 200 million yen in loans to organized-crime syndicate members 230 times in total. However, the bank did not act on this fact for two years.

Dealing with yakuza violates ethical regulations of the financial institutions themselves as well as being in violation of the Organized Crime Group Countermeasures Act intended to limit the acceptance of antisocial organizations. Banks are supposed to protect the interests of depositors and other bank users and to contribute to society through legitimate financial activities.

Cut the link with antisocial groups

Mizuho Bank was formed after the merger of Dai-ichi Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan. Each of the three banks had a history of being severely criticized for their dubious deals with crime syndicates and corporate extortionists called “sokaiya”.

As a leading banking institution, in order to fulfill its corporate social responsibility, Mizuho Bank should immediately put an end to its collusive relationship with antisocial organizations. The government and the Financial Service Agency should not only impose an administrative penalty on the bank but also investigate the responsibility of Mizuho Bank from the bottom up and investigate the activities of other financial establishments as well.