Mizuho Financial Group would bear heavy management responsibility if it went ahead with the launch of its two key banks on April 1 despite having been aware that extensive computer problems could occur, Chief Cabinet Secretary Yasuo Fukuda said Monday.

“The Financial Services Agency received a report (from Mizuho) that they had not expected such troubles to happen,” the top government spokesman said. “If (Mizuho) made a (false) report to the FSA, it would bear heavy responsibility.”

Fukuda criticized the Mizuho group for causing the recent computer problems that have plagued Mizuho Bank, one of the two banks launched April 1, saying there is “no doubt” the troubles seriously undermined the public’s faith in Japanese financial institutions.

It would be immoral if the group did go ahead with the launch while knowing that problems would occur, he said.

On Saturday, the group said that a backlog of money-transfer orders at its two new lenders started building up at the end of March, before the April 1 launch of Mizuho Bank and Mizuho Corporate Bank.

The two came out of the merger of Dai-Ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan.

At one point, the backlog reached 3 million.

Mizuho resumes work

Mizuho Financial Group said Monday it has resumed work to clear a backlog of money transfer orders that its computers have been unable to process, although a full resolution is not in sight.

Officials at Mizuho Holdings Inc. said most money transfers due Monday were processed and that the banks are expediting work to deal with some 400,000 pending transfers that had accumulated through the end of last week.

On Monday, pay for about 180,000 employees of the Tokyo Metropolitan Government was to be deposited in customer payroll accounts at Mizuho Bank, and no delays or other problems were reported, bank officials said.

Meanwhile, Tokyo Electric Power Co. said the same day that it received notice from Mizuho that 114,000 transfers for customer bill payments have been completed.

It is the first time since April 1 that Tepco had been informed of completed money transfers by Mizuho, the utility said. But Tepco has yet to receive a notice on 651,000 other transfers, it added.

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