Japan bank clearing system faces glitches for a second day (updated)

Resona Holdings

11/10/2023 12:32

(Adds details in paragraphs 3 to 7)
    By Makiko Yamazaki
       TOKYO, Oct 11 (Reuters) - Japan's bank payment clearing
system experienced glitches for the second day, disrupting more
than 5 million domestic fund transfers in total in two days as
it struggled to fix the software programme, the system operator
said on Wednesday.
    The continued failure, the first major one since the system
was launched in 1973, caused delays in transfers to and from 11
banks including MUFG Bank  8306.T  and Resona Bank  8308.T , the
system unit of the Japanese Bankers Association said.
    The system, a key banking infrastructure connecting more
than 1,000 financial institutions operating in the country,
faced glitches when the operator tried to upgrade relaying
computers designated for the 11 banks.
        The failure caused delays in 5.06 million transfers in
two days. A majority of those were processed through alternative
methods, while 870,000 were expected to remain unprocessed, the
operator said.
  
        The operator said it would install a new programme that
it hopes will restore the system by Thursday morning.
  
        Among the banks impacted by the glitches, MUFG Bank
reduced the hours for taking transfer requests on Wednesday.
  
        The operator said it was focusing to restore the system
and yet to discuss how to compensate the affected banks.
  

 (Reporting by Makiko Yamazaki; Editing by Christian
Schmollinger and Louise Heavens)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))