Japan FSA to Issue Biz Improvement Order to Mizuho Soon
Tokyo, Sept. 22 (Jiji Press)--Japan's Financial Services Agency will soon issue a business improvement order to Mizuho Bank, which was hit by a series of system failures this year, and its parent, Mizuho Financial Group Inc. <8411>, under the banking business law, it was learned Wednesday.
In an unusual move, the financial regulator is expected to strictly supervise Mizuho Bank by involving itself in the management of the bank's system.
The FSA apparently believes that it would be difficult to fully resolve the issue at the major Japanese banking group if system management is left entirely in the hands of Mizuho Bank and Mizuho Financial.
The agency plans to send technology experts to the Mizuho side to allow the government agency, the professionals and the bank to jointly engage in the operations and updates of the system with the aim of mitigating the risks of a glitch happening again, informed sources said.
At Mizuho Bank, the core unit of Mizuho Financial, system outage happened four times between February and March, leading to cash cards being stuck inside automated teller machines, among other consequences. The bank released a set of preventive measures in June, but three more system glitches occurred between August and this month.
[Copyright The Jiji Press, Ltd.]