Japan regulator chides Mizuho for loans to crime network members
TOKYO, Sept 27 (Reuters) - Japan's banking regulator on Friday chided Mizuho Financial Group for failing to take sufficient action against loans it had extended through a consumer credit agency to members of organised crime networks.
In a rare public admonishment of a major bank, the Financial Services Agency (FSA) said on Friday that Mizuho had known since 2010 that it had, through the credit agency, extended more than 200 million yen ($2 million) in loans to what the regulator called counter-social forces.
The regulator also ordered Mizuho to improve its business practices. The FSA's order does not carry any penalty, but it is highly embarrassing for Mizuho, Japan's second largest lender by assets.
Mizuho declined to identify the consumer credit company or to say how many credit companies were involved in the loans, but said in a statement that "it solemnly accepts the (FSA's) order and will make effort to prevent its recurrence." ($1 = 98.9550 Japanese yen)
(Reporting by Noriyuki Hirata; Writing by Taiga Uranaka; Editing by Miral Fahmy)