Mizuho to review banking system recovery procedures after problems

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Mizuho Bank and its parent company, Mizuho Financial Group Inc., submitted a report to the Financial Services Agency on Tuesday on a recent system problem, including a plan to redo their system restore procedures.

The report also planned to review the mega-banking 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 on August 19 and 20, and will continue to investigate the matter.

Based on the report, the FSA will investigate the problem with the system in question as well as other system failures that occurred at the bank between February and March of this year.

As Mizuho Bank has been hit with system problems six times this year alone, the FSA will take tough action against the bank.

The fifth problem of the year occurred around 9 p.m. on August 19 in the equipment connecting the mainframe to computers at bank branches.

As the backup system repeatedly failed to work, the issue was not resolved in time for the business to start the next morning.

The retail counters of all branches of Mizuho Bank and Mizuho Trust & Banking Co. became temporarily unable to perform money transfer, deposit and withdrawal services that morning.

Customers were notified via the banks’ websites of the disruption just 30 minutes before the branches opened.

It also emerged that 500,000 were illegally withdrawn due to a delay in payment card reissue procedures during the problem.

It took a long time for the group to restore their systems, mainly due to the failures of the backup system. A backup of a key server in Tokyo did not work after the problem started, followed by another backup failure.

The group ended the banking system failure by restarting a backup server in neighboring Chiba prefecture intended for use primarily during natural disasters.

In the report to the FSA, Mizuho Bank and Mizuho Financial Group said they will establish recovery procedures in anticipation of when the backup system does not work.

“We should have prepared measures at several levels,” said an official from Mizuho Bank.

Regarding the core banking system, introduced in 2019, Mizuho Bank and Mizuho Financial said they would consider conducting an inspection to see if the system is working as expected.

On the delay in notifying clients, both stressed the need for tighter time management, including setting a deadline for making decisions on how to respond.

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