Mizuho Financial Group Inc. officially announced Dec. 26 that its chairman, Takashi Tsukamoto, will resign on March 31 to take responsibility for the gangster loan scandal.
"Taking into account the responsibility that the whole Mizuho group must shoulder, (Tsukamoto) made an offer to resign," said Mizuho Bank President Yasuhiro Sato during a news conference on Dec. 26.
The bank has fallen under criticism for allowing Tsukamoto to stay as the chairman of Mizuho Financial Group even after he resigned as the Mizuho Bank chairman at the end of October.
Sato also announced an overhaul of the group's management system and other additional improvement measures on Dec. 26.
Mizuho Financial Group and its affiliate Mizuho Bank were ordered the same day by the Financial Services Agency to further improve their business operations and suspend extending new loans via the bank’s consumer credit affiliate Orient Corp. for a month between Jan. 20 and Feb. 19.
The government agency had already issued a business improvement order for Mizuho Bank in late September.
An outside panel found that Mizuho was lax in resolving more than 200 million yen ($1.9 million) in lending, mostly auto loans, to borrowers associated with organized crime figures.
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