22 Sept 2021
FSA Steps in to Assess Mizuho’s Systems Flaws
The Index Today
Mizuho Financial Group’s retail banking unit experienced glitches which exposed failings despite having an upgrade worth $3.6 billion.
Japan’s banking regulator, The Financial Services Agency FSA has taken the responsibility to oversee computer systems at Mizuho over regulatory concerns. The move has been considered unusual as no other bank has had FSA so deeply involved in its inspections of computer systems.
FSA will inspect the running of computer systems at Mizuho after the bank experienced a number of technical meltdowns this year. Some of the leading issues pointed out included ATM malfunctions.
FSA officials said during a media briefing, “Mizuho will submit reports with what’s needed to be done to us and we will point out if changes are needed.” According to reports, the bank experienced a large-scale breakdown in 2002 and 2011, pushing it to invest over $3 billion in its technology infrastructure and systems.
Third-party reports revealed that Mizuho’s corporate culture was directly responsible for creating an environment where managers were too afraid to express opinions and handle crisis, which further led to technical break downs.
Mizuho has stated it will reassess all its systems and schedule upgrades where necessary. The bank aims to make IT operation its number one priority and bring everyone on boards to resolve all related issues.