A major system failure has brought customer-facing banking services to a standstill at 128 shinkin banks across western Japan, leaving customers unable to withdraw cash, make deposits, or carry out online transactions.
The incident started at about 1:30 PM on November 6, as reported by Shinkin Central Bank, which runs the main banking systems for the country’s shinkin banks.
The outage has hit all 128 shinkin banks in the Tokai area. ATM withdrawals, transfers, deposits, and cashing out at 3,430 branches are all on hold. Internet banking is also not working.
Shinkin Central Bank said the disruption stemmed from a communication failure with equipment at its West Japan Centre, which manages the banking network in that area.
An equipment malfunction is thought to have occurred, but the exact reason is not known. The bank said no unauthorized access was found and they do not think there is a cyberattack at this time.
Restoration efforts are under way, with engineers attempting to restart the affected systems and identify the cause of the failure.
The Shinkin Joint System is used by 236 shinkin banks, which is over 90% of all such banks in Japan. The system is divided into eastern and western Japan, and the recent problem affected only the western side. Shinkin banks in eastern Japan are still working as usual.
The outage might interrupt daily banking and payments for local businesses, especially small traders and medium-sized companies that depend on regional shinkin banks. Shinkin Central Bank is working to establish the exact cause and restore services, while keeping affected lenders informed.
Recovery and service restoration:
The disruption lasted approximately five and a half hours. According to Japanese broadcaster TV Asahi, services were progressively restored, with full recovery reported at approximately 7:05 p.m. Japan time on November 6.
Source: Bloomberg,CNBC,outlookindia
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