FSA Eyes Direct Involvement in Mizuho System Management

Economy Politics

Tokyo, Sept. 21 (Jiji Press)--Japan's Financial Services Agency is considering taking the unusual administrative measure of getting directly involved in the management of Mizuho Bank's core banking system, sources said Tuesday.

After a series of system failures at the bank, the FSA is seen having the bank report progress in its system improvement and maintenance work in order to jointly manage the work, the sources said.

The financial industry watchdog expects that the joint management would help reduce the risk of a recurrence of such a failure and facilitate thorough probes into the cause of the glitches, according to the sources.

Mizuho Bank, the core unit of Mizuho Financial Group Inc. <8411>, has been hit by seven system failures since February.

Over the two weeks from late that month, the bank had four system failures, including cases in which customers got their cash cards and bankbooks stuck inside automated teller machines.

[Copyright The Jiji Press, Ltd.]

Jiji Press