The government on Tuesday issued a business improvement order to Shoko Chukin Bank, a government-linked lender for small and medium-size firms, found to have extended shady loans and falsified documents related to a state-backed program to help crisis-hit companies.
The Ministry of Economy, Trade and Industry, the Finance Ministry and the Financial Services Agency aim to widen the investigation to the bank's overall lending through the program.
The order came following revelations that Shoko Chukin extended emergency loans to companies that did not fulfill criteria under the state-backed policy as the bank was eager to expand loans and achieve lending targets.