The Bank's Closer Monitoring of Mizuho Financial Group

June 19, 2002
Bank of Japan

The Bank of Japan conducted on-site examination at Mizuho Corporate Bank from May 8 to June 5, 2002, and notified it of the results on June 11. Based on the results of the Bank's on-site examination and the inspections conducted by the Financial Services Agency (FSA) of Mizuho Holdings, Inc. and Mizuho Bank, the FSA today issued a business improvement order to Mizuho Financial Group.

It is essential that Mizuho Financial Group, as a provider of funds settlement services, improve its computer systems and operational procedures without delay, and strengthen its management system to achieve this end, given the current situation of the group and the important role it plays in Japan's payment and settlement system. Therefore, the Bank decided it necessary to conduct closer monitoring of the group's measures to address its various problems and progress in their implementation.

Specifically, the Bank will conduct closer monitoring of Mizuho Holdings, Inc. , Mizuho Bank, and Mizuho Corporate Bank by requesting them to report to the Bank on the following three points in accordance with the Contract regarding On-Site Examinations and by holding interviews with them.

1. Measures taken to address the computer system failure and the confusion caused in administrative operations, and progress in their implementation.
2. Progress in the plans on computer system integration.
3. Improvement in the internal control system, including senior management system.

The Bank will, if deemed necessary, consider conducting on-site examination.