TOKYO (Reuters) - Mizuho Financial Group said on Monday that the chairman of its banking unit will resign, while its president will take a six-month pay suspension following a loans-to-mobsters scandal that has embroiled Japan's second-biggest lender by assets.

Mizuho has been under fire after regulators last month reprimanded it for failing to terminate loans to members of origanised crime syndicates for more than two years after it found about them.

Japan's Financial Services had ordered Mizuho to submit a report by Monday on how it will improve its compliance regime.

The regulators demanded another report after the bank said some of top management had been actually known about these problem loans, contradicting what it told the Financial Services Agency earlier.