TOKYO (AFX) - The Financial Services Agency is preparing to order Bank of Tokyo-Mitsubishi UFJ to suspend new-loan activities in the Osaka region for a predecessor bank's long-standing involvement with an embezzler, the Nikkei reported, over the weekend
Awaji branch of Sanwa Bank, which was later absorbed by Mitsubishi UFJ Financial Group, began extending loans from around 1984 to Kunihiko Konishi, then chairman of the Osaka-based foundation Asukakai, the business daily said.
The loan balance to Konishi eventually reached several billion yen, it said.
The order is likely to be limited to the Osaka region, the report said.
In a separate case, the FSA is expected to slap Mitsubishi UFJ Securities Co, the securities unit of Mitsubishi UFJ Financial, with a business improvement order for a regulatory violation in its proprietary trading activities, the business daily said.
(1 usd = 121.55 yen)
yasuhiko.seki@xfn.com