September 27, 2013
Financial Services Agency
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.
Banks Division I, Supervisory Bureau
Financial Services Agency
Tel: 03-3506-6000 (main)
(Ext. 3396, 3328)