Mizuho Bank and its parent, Mizuho Financial Group Inc., submitted on Tuesday a report to the Financial Services Agency on a recent system glitch, including a plan to remake their system restoration procedures.
The report also included plans to review the megabank group’s customer response measures and conduct a thorough inspection of its new core banking system.
Meanwhile, the bank and the holding company said they were unable to identify the cause of the system failure, which occurred Aug. 19 and 20, and will continue to look into the matter.
Based on the report, the FSA will investigate the system glitch in question together with other system failures that occurred at the bank between February and March this year.
As Mizuho Bank has been hit with system glitches six times this year alone, the FSA will take strict measures against the bank.
The fifth glitch of the year occurred around 9 p.m. on Aug. 19 in equipment connecting the core system with computers in bank branches.
As the backup system failed to function several times, the problem was not resolved in time for the start of business next morning.
Retail counters of all branches of Mizuho Bank and Mizuho Trust & Banking Co. became unable to conduct money transfer, deposit and withdrawal services temporarily that morning.
Customers were informed through the banks’ websites of the disruption only 30 minutes before the branches opened.
It has also emerged that ¥500,000 was withdrawn illegally due to a delay in cash card reissuance procedures during the glitch.
It took a lot of time for the group to restore its systems mainly because of the backup system failures. A backup of a key server in Tokyo failed to function after the glitch started, followed by a failure of a different backup.
The group ended the banking system failure by restarting a backup server in the neighboring prefecture of Chiba intended for use mainly during natural disasters.
In the report to the FSA, Mizuho Bank and Mizuho Financial Group said that they will establish restoration procedures in preparation for when the backup system fails to function.
“We should have prepared multilayered measures,” an official at Mizuho Bank said.
On the core banking system, introduced in 2019, Mizuho Bank and Mizuho Financial said they will consider conducting an inspection to see whether the system works as designed.
On the delay in notification to customers, the two pointed to the need for stricter time management, including by establishing a time limit to make decisions on how to respond.
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