Japan Regulator Mulls Disciplining Mizuho Bank For Tech Breakdown

Mizuho Bank may face disciplinary action from Japan's regulatory watchdog after a system-wide breakdown last week led to millions of Japanese being unable to access salary payments or use automatic teller machines, citing a person familiar with the matter.

Mizuho Financial Group on Friday warned that almost $10 billion worth of transactions could be disrupted by the failure of its computer systems following the devastating March 11 earthquake, hobbling basic banking services for businesses and millions of Japanese.

Mizuho on Sunday held operational-level talks with rival Sumitomo Mitsui Banking Corp and the Bank of Tokyo-Mitsubishi UFJ , over how they could help Mizuho with transaction settlements, in case Mizuho's troubles persist, the WSJ said, citing a source familiar with the matter.

Japan's Financial Services Agency has asked Mizuho's rivals to help it through the crisis, the WSJ reported.

According to the source, the two Japanese banks are considering shouldering some of Mizuho's unprocessed settlements, the report said.

Mizuho, Japan's second-largest bank by assets, said its automatic teller machines, which first showed signs of trouble on Thursday, would be disabled until March 21. Internet banking services would also be down until that date.

Mizuho operated 5,622 ATMs and 440 branches in Japan as of September, making it a key component of the Japanese financial system.

Japanese markets were closed on Monday for a holiday.