September 27, 2013
Financial Services Agency

Administrative Action on Mizuho Bank Co., Ltd.

  • 1.Having received the results of an investigation into Mizuho Bank Co., Ltd. (notification of results: June 2013) and requested a report in accordance with Article 24.1 of the Banking Act, the FSA has determined serious problems with the Bank’s postures toward administrative control, internal control, and legal/regulatory compliance, including:

    • (1)the fact that no substantial steps were taken to prevent/break off transactions with anti-social forces for more than two years after it was ascertained that tie-up loans (*Note) had been provided to multiple anti-social forces, and

    • (2)the fact that information on the existence of numerous transactions with anti-social forces went no farther than the executive in charge.

    (Note) A loan for which a consumer credit company receiving an application from a customer screens and approves the customer, and a financial institution makes the loan to the customer on condition of a guarantee from the consumer credit company.

  • 2.Accordingly, the FSA has today issued to this Bank a business improvement administrative order as described below in keeping with the provisions of Article 26.1 of the Banking Act.

    • (1)In order to make a clean break from anti-social forces and ensure sound and proper business administration, the Bank shall fundamentally review, enhance and strengthen its legal compliance and administrative control in terms of the following:

      • a)Clarifying where management responsibility lies, from the initial occurrence of this problem to the present

      • b)Clarifying management’s approaches to tackling this problem and addressing legal/regulatory compliance

      • c)Formulating specific measures effective in preventing a recurrence of this problem and establishing bank-wide legal/regulatory compliance (including fostering and ensuring awareness among executives and employees of the importance of legal/regulatory compliance)

      • d)Enhancing/strengthening internal control functions

    • (2)The Bank shall submit a business improvement plan covering the items in (1) above no later than Monday, October 28, 2013, to the FSA and then immediately put this plan into action.

    • (3)Between the start of the improvement plan in (2) above and its completion of this same plan, the Bank shall submit a progress/status report at the end of November 2013 and the end of December 2013, and shall submit a progress/status report for every three-month period thereafter by the 15th day of the following month.

Contact

Banks Division I, Supervisory Bureau
Financial Services Agency
Tel: 03-3506-6000 (main)
(Ext. 3396, 3328)