Japan regulator sets penalties on Mizuho over mob loan scandal -source
TOKYO Dec 26 (Reuters) - Japan's banking regulator on Thursday will order Mizuho Financial Group's banking unit to suspend some of its lending business with consumer credit companies from Jan. 20 to Feb. 19, but it will issue no other specific penalties in connection with a scandal over loans linked to members of organised crime syndicates, a source familiar with the matter said.
The order, a rare second action by the Financial Services Agency in response to a single incident, will also demand that Japan's second-largest lender and its parent group improve business practices and clarify lines of responsibility, the source said.
The agency is scheduled to make an official announcement on the order at 3:35 p.m. (0635 GMT).
Sources told Reuters on Wednesday that a suspension of some operations was expected to be included in the order.
Banking examiners conducted a second round of investigations into Mizuho after it acknowledged providing authorities with false information about how it handled the loan problem.
The FSA issued a business improvement order to Mizuho in late September for failing to take action for two years after the bank learned some of its loans were made to "anti-social forces".
(Reporting by Noriyukio Hirata; Additional reporting by Taiga Uranaka and Emi Emoto; Writing by Edmund Klamann; Editing by Shinichi Saoshiro)
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