Glitch-Hit Mizuho to Face On-Sight Inspection by FSA

Economy Politics

Tokyo, March 17 (Jiji Press)--Japan’s Financial Services Agency will conduct an on-sight intensive inspection as early as this month at Mizuho Bank, which has suffered a system failure four times in about two weeks, it was learned on Wednesday.

The agency will scrutinize system operation records to find out the causes of the breakdowns, informed sources said. Mizuho Financial Group Inc. <8411>, the parent of the Japanese megabank, will also be inspected.

The FSA will consider whether to impose an administrative punishment on Mizuho Bank after looking into the results of the inspection.

Since the agency takes seriously Mizuho Bank’s failure to deal with affected customers promptly, the bank will likely face a severe punishment such as a business improvement order.

The FSA has ordered Mizuho Bank and Mizuho Financial to submit by the end of this month a report on the system glitches, including explanations on their causes and measures to prevent any recurrence.

[Copyright The Jiji Press, Ltd.]

Jiji Press