Japan’s banking regulator will jointly oversee system management at Mizuho Financial Group’s retail arm, as part of an administrative action against the bank following a series of technical failures, the Nikkei newspaper reported on Tuesday.
The Financial Services Agency will take action against retail lender Mizuho Bank and its parent, Japan’s third-largest lender by assets, as early as this week, the Nikkei said.
While the regulator will jointly manage the system with the bank, it will order that system updates and maintenance be carried out under its control.
The management structure of the system may also be reviewed if necessary, the Nikkei said.
The regulator will determine where management responsibility lies after clarifying the cause of Mizuho’s recent technical problems, it said.
A spokesperson for Mizuho was not immediately available for comment.
Mizuho has been hit by a series of high-profile technical meltdowns this year, despite having spent more than $3.6 billion to overhaul its systems in 2019. That revamp followed two large-scale breakdowns in 2002 and 2011.
A third-party report commissioned by the bank found its corporate culture is to blame for its long history of tech system failures, creating an atmosphere where managers are reluctant to express opinions and unable to respond well to crises.
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