Japan bank CEO quits over claims of $2.2b in bad loans

The head of a Japanese bank backed by the government announced Wednesday that he would resign in response to an internal investigation that revealed widespread misconduct involving shady loans of the order of $ 2.2 billion.

The report alleged that hundreds of employees from almost all offices of the Shoko Chukin Bank across Japan falsified documents to make low interest loans to companies that could not to receive them.

The program was designed to lend public funds to small and medium-sized businesses affected by the 2008 global financial crisis and the 2011 earthquake disaster in Japan.

In all, the Tokyo-based bank made about $ 260 billion ($ 2.2 billion) in impaired loans, according to the report, which she released Wednesday.

Bank President Kenyu Adachi, a former senior official of the Ministry of Industry, said he would step down "at the appropriate time".

The private bank is 80% financed by the government.

The claims "undermine trust in the organization at its core," Adachi said at a press briefing.

"Senior management has the greatest responsibility and I want to take on this responsibility as the highest executive of the company."

Public broadcaster NHK said that Adachi would give up his salary for six months – a common act of contrition among Japanese executives.

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