The Nihon Keizai Shimbun reported earlier today, without citing sources, that the Financial Services Agency (FSA) is considering imposing some administrative measures against UFJ Holdings for allegedly making the balance of loans to SMEs larger than they actually were.
UFJ Holdings Inc, Japan's fourth-largest banking group, denied a newspaper report that the company inflated its balance of loans to small- and mid-sized businesses (SMEs) at the end of the financial year to March 2004.
"We are not in a position to comment on the FSA's inspections...but we did not falsify the data during the inspections," said company spokesman Akihiro Furutani.
Major banks that receive public funds are required to meet specific targets of loan balance to SMEs. The bank's loan balance to SMEs at the end of March stood at 27.1 trillion yen, according to data released by UFJ.
Specific targets for the balance of loans to small business are not available.
