* Chairman Tsukamoto to step down in March
* President Sato says he has no intension to step down
* Mizuho to introduce board structure shakeup to boost
By Taiga Uranaka
TOKYO, Dec 26 Mizuho Financial Group
chairman Takashi Tsukamoto will quit in March to take
responsibility for a scandal over loans to organised crime, and
the bank will restructure its board to improve governance, it
said on Thursday.
Japan's banking regulator issued a second
business-improvement order to the country's second-largest
lender on Thursday due to its inaction and false reporting over
loans it has extended to organised crime members.
"We need to sweep away our silo mentality and change our
corporate culture," Mizuho President Yasuhiro Sato told a news
The bank said Sato will give up his pay for 12 months
starting from last month, up from six months initially announced
Asked whether he also intended to step down, Sato said: "It
is my responsibility to build a corporate governance system that
is held in high regard in global financial markets."
Mizuho said it will introduce board committees made up of
outside directors, and will also pick an outsider to chair its
board. It will propose these changes to shareholders when they
meet in June, it said.
The Financial Services Agency ordered Mizuho earlier in the
day to suspend some lending business with consumer credit
companies from Jan. 20 to Feb. 19. It admonished the bank for
management and organisational failures that led to the problems.
The regulators conducted a rare second round of
investigations at Mizuho after the bank acknowledged giving the
authorities false information on how it handled the loan
The FSA issued a business improvement order to Mizuho in
late September for failing to take action for two years after
learning that some of its loans had been made to "anti-social
forces", a euphemism for organised crime.
The 230 small transactions totalling about $2 million,
mostly made up of car loans, were made by Mizuho
consumer-finance affiliate Orient Corp and were among
bulk loans the bank later bought from Orient.