Japanese regulator to oversee Mizuho’s IT system, Nikkei says

TOKYO, September 21 (Reuters)Japanese banking regulator to jointly oversee system management at Mizuho Financial Group 8411.T retail trade, as part of an administrative action against the bank over 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 company, Japan’s third-largest lender by assets, starting this week, the Nikkei said.

While the regulator will jointly manage the system with the bank, it will order that updates and maintenance of the system be carried out under its control.

The system’s management structure can also be revised if necessary, the Nikkei said.

The regulator will determine where management responsibility lies after clarifying the cause of Mizuho’s recent technical issues, he said.

A spokesperson for Mizuho was not immediately available for comment.

Mizuho has been hit by a series of high-profile technical failures this year, although he spent more than $ 3.6 billion to overhaul his systems in 2019. The redesign follows two large-scale failures in 2002 and 2011 .

A third-party report commissioned by the bank found that its corporate culture is to blame for its long history of technology system failures, creating an atmosphere in which managers are reluctant to voice their opinions and unable to respond well to crises.

(Reporting by David Dolan; editing by David Evans)

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Gordon K. Morehouse