Sumitomo Mitsui Financial Group Inc. said one of its group companies lent money to mobsters and other questionable borrowers.
It was the last of the nation's three mega-banking groups to admit that an affiliate extended loans to underground figures, following Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc.
“We need to make (the screening of loan applicants) more rigorous,” SMFG President Koichi Miyata said at a Nov. 12 news conference in Tokyo.
Miyata said consumer credit company Cedyna Financial Corp. extended loans to gangsters and other mob-related people, but he did not reveal the number of cases or amount of money loaned. Cedyna has started to cancel contracts with problem borrowers.
Miyata said Sumitomo Mitsui Banking Corp., the group's core bank, will share its gangster-related information with Cedyna by the end of September 2014 as a means of preventing a recurrence.
He said the group has moved up the information-sharing plan by several months because of a similar scandal uncovered recently at Mizuho Bank.
“We have to speed up the reform process (considering the problem at Mizuho),” Miyata said.
Under the MUFG umbrella, consumer credit company Jaccs Co. and consumer loan company Acom Co. also said this month that they have lent money to gang members.
MUFG said the Bank of Tokyo Mitsubishi-UFJ, the group's core bank, has been sharing gangster-related information with Acom since fiscal 2012. The bank also completed the information-sharing process with Jaccs in October to enhance its loan-screening system.
Mizuho Bank, the core bank of Mizuho Financial Group, was found to have extended loans to underground figures through Orient Corp., a group consumer credit company, and other companies.
Mizuho Bank also plans to share gangster-related information with Orient Corp.
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