Japan FSA Issues Biz Improvement Order to Mizuho
Tokyo, Sept. 22 (Jiji Press)--Japan's Financial Services Agency issued on Wednesday 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.
The government agency will strengthen its involvement in Mizuho Bank and effectively manage the bank's system, such as by instructing it to review its system upgrade and update plans and to secure an appropriate management framework during such changes.
It is unusual for the financial regulator to take administrative action without waiting for the results of ongoing probes.
It was the third time for the FSA to issue a business improvement order to Mizuho Bank over system glitches. The first order was given in 2002 and the second in 2011.
This time, the agency took the situation seriously as the causes of the problems have not completely clarified even though the bank experienced seven system failures in about six months.
[Copyright The Jiji Press, Ltd.]