Japan's financial regulators are set to issue a business improvement order against Mizuho Financial Group Inc. and its banking arm Mizuho Bank over a string of system failures this year, sources familiar with the matter said Tuesday.
The administrative measure comes after seven system failures have occurred at the Japanese megabank this year, with the latest disrupting about 100 automated teller machines on Sept. 8. Mizuho has yet to get to the bottom of the series of failures.
As part of the order, the Financial Services Agency will request that Mizuho Bank submit a work plan for system maintenance and updating, with the watchdog effectively overseeing operations.
The move is aimed at preventing further system failures and instability to other financial systems.
The bank started running its current system in July 2019 following large-scale system failures in April 2002 and March 2011.