Two more of Japan's big banks were implicated yesterday in a widening bribery scandal involving officials at the powerful Ministry of Finance (MOF).

Tokyo prosecutors issued fresh arrest warrants against two ministry inspectors, who are already in police custody, on suspicion that they accepted lavish entertainment from Sumitomo Bank and the Bank of Tokyo-Mitsubishi (BTM) in exchange for confidential information.

The issue of the warrants meant that six of Japan's 10 major city banks have now been implicated in the scandal.

The officials were arrested last month on suspicion of taking similar favours from four other banks - Asahi, Dai-Ichi Kangyo, Sanwa and Hokkaido Takushoku. Prosecutors indicted the two on bribery charges involving these banks yesterday.

Mr Koichi Miyakawa is accused of receiving about 1.3 million yen (£7,500) worth of bribes in the form of wining and dining from Sumitomo Bank, Asahi Bank and Sanwa Bank, while Mr Toshimi Taniuchi was suspected of receiving more than two million yen worth of bribes from BTM, Sumitomo and Dai-Ichi Kangyo, prosecutors said.

Banks have pledged to abolish their so-called "MOF handler" system, under which officials are assigned to wine and dine ministry officials in return for confidential information such as the schedule of the supposedly surprise inspections.

Japan also enacted two laws on Monday to provide up to 30 trillion yen to help prop up the banking sector, but still unresolved was the issue of what standards would be employed in deciding which banks get public funds.