Japanese Mizuho suffered another problem, some transactions were delayed

The Mizuho Financial Group logo is seen at the company’s headquarters in Tokyo, Japan on August 20, 2018. REUTERS / Toru Hanai // File Photo

TOKYO, Sept.30 (Reuters) – The main banking arm of Mizuho Financial Group (8411.T) said on Thursday that a system glitch had delayed some foreign exchange transactions, just one week after being hit with a regulatory sanction for system problems earlier in the year.

Japan’s third-largest lender has experienced a series of technical issues despite a $ 3.6 billion system overhaul in 2019, prompting the Financial Services Agency (FSA) to become more involved in inspections of its IT system, a unusual decision for the banking regulator. Read more

The latest malfunction occurred on the last day of the April-September half of the Japanese fiscal year, which typically sees an increase in transactions by companies.

A spokesman for Mizuho said some deals may not be completed by the end of Thursday.

The new problem with the system could also lead to further regulatory action from the FSA, as the regulator said last week that its next step would depend on a report from the bank, which is due on October 29.

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

Reporting by Makiko Yamazaki and Yuki Nitta; edited by Jason Neely, Robert Birsel

Our Standards: Thomson Reuters Trust Principles.

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