Mizuho Bank, Ltd. was awarded the Proof-of-Concept (PoC) grant on 9 March 2020 which provides funding support for experimentation, development and dissemination of nascent innovative technologies in the financial services sector. The PoC grant is part of the Financial Sector Technology and Innovation (FSTI) scheme under the Financial Sector Development Fund administered by the Monetary Authority of Singapore (MAS).

Effective Credit Risk Management (CRM) is the backbone of any commercial bank’s risk management framework. The credit assessment process requires the assessor to derive an opinion on the credit worthiness of a borrower using a diverse range of information such as exposures, financial performance, company developments and external business environment. The information gathering process is often manual and time-consuming.

Our PoC aims not only to help streamline the data information gathering process, but also relook at the way data sources can be organized and visualized in a more insightful manner using knowledge graph and semantic ontology.

With a credit grading recommendation engine and an early warning flag built within the system using advanced data driven methods like machine learning, we aim to generate an educated credit opinion using deep learning models (i.e. LSTM and SEQ2SEQ). Ultimately, credit risk evaluation would evolve into a process that is more time sensitive and predictive.

The positive outcome of our PoC suggests that the introduction of an engine equipped with basic cognitive ability similar to a human being would be a milestone towards in the development of explainable AI. Not only will the engine produce a predictive outcome for human consumption, it will also be able to explain how it managed to derive at the conclusion.

Read the Whitepaper (PDF/1.03MB).

• Mizuho Financial Group Annual Report (Year ended March 2024) - English (PDF/250KB)

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• Mizuho Financial Group Annual Report (Year ended March 2023) - English (PDF/194KB)
• Mizuho Financial Group Annual Report (Year ended March 2023) - Chinese (PDF/372KB)
• Mizuho Financial Group Annual Report (Year ended March 2023) - Malay (PDF/66KB)
• Mizuho Financial Group Annual Report (Year ended March 2023) - Tamil (PDF/140KB)

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• Mizuho Financial Group Annual Report (Year ended March 2022) - English (PDF/214KB)
• Mizuho Financial Group Annual Report (Year ended March 2022) - Chinese (PDF/780KB)
• Mizuho Financial Group Annual Report (Year ended March 2022) - Malay (PDF/477KB)
• Mizuho Financial Group Annual Report (Year ended March 2022) - Tamil (PDF/97KB)

Mizuho Financial Group, Inc., (together with its related corporations, parent companies, offices, branch offices, representative offices, associated companies and includes their respective successors and assigns (and the respective branch offices and representative offices of each of such, subsidiaries, related corporations or associated companies) wherever situated, collectively referred to as “Mizuho”) is committed to comply with applicable tax laws and regulations across the jurisdictions where we operate. Mizuho’s Group Chief Financial Officer (“CFO”) is responsible for the oversight of tax responsibilities, ensuring tax compliance and tax risk management. Mizuho’s CFO also reports, whenever necessary on a case–by–case basis, on tax–related issues or efforts to the Board of Directors, Audit Committee, Executive Management Committee, and the President and Group Chief Executive Officer.

Through resolution of the Board of Directors, Mizuho has established and publicly released a Group Tax Policy, which sets forth a group-wide, uniform approach to tax matters to fulfil our corporate social responsibilities, and to increase corporate value by establishing and enhancing our credibility and reputation in the eyes of shareholders, investors, and all customers across the globe. The policy is further supplemented by procedures and guidelines to ensure compliance.

Mizuho Bank, Ltd. in Singapore (the “Branch”) adopts and adheres to the Group Tax Policy. At the same time, the Branch with full support from Singapore Management, has also established its own Tax Governance Policy.

Compliance with Tax Laws

The Branch endeavours to comply with all relevant and applicable tax laws, regulations, circular notices, guidelines, and tax treaties in any jurisdiction where we operate, and to fulfil appropriate tax liabilities. We carry out cross–border transactions with overseas affiliates at arm's length prices in accordance with the OECD Transfer Pricing Guidelines.

The Branch does not undertake aggressive tax planning nor operate in tax-free or low tax jurisdictions (known as tax havens) where the sole aim of business is to achieve tax avoidance or profit shifting, which are against the spirit of tax laws. We will only undertake transactions that are supported by genuine business purposes, and commercial and economic substance.

The Branch’s policies and procedures are reviewed and updated periodically or when necessary to comply with any relevant updates to laws and regulations (including all relevant tax laws and regulations).

Tax Governance Framework & Tax Risk Management

The Branch has formalised a governance structure for tax risk management and implements appropriate tax operations for the purpose of complying with applicable tax laws and regulations as well as reducing economic disadvantages and compliance issues.

The Branch has clearly defined roles and responsibilities and a sound system of risk management and internal controls to identify, assess and manage tax risks and ensure accurate reporting.

The Branch’s General Manager and the Managing Director, supported by the Financial Reporting and Tax Administration team, is responsible for overseeing the Branch’s tax affairs, including tax compliance and timely tax payments.

The Branch employs professionals with the necessary tax skills and knowledge to manage tax compliance, tax risks and advisory. External professional advisors are also appointed as the Branch’s tax agent to handle the compliance tax matters of the Branch in a timely manner.

The Branch is guided by a set of established escalation and approval procedures to its Singapore Management and where necessary, Head Office, for significant tax issues exceeding the reporting threshold, tax risk or tax uncertainty. To the extent where there is significant tax risk or tax uncertainty, we will seek external professional advice or where applicable, consult with or seek a ruling from the relevant tax authority.

Relationship with Tax Authorities (including Inland Revenue Authority of Singapore)

The Branch is committed to ensuring compliance, effecting timely and appropriate tax filings, fulfilling its obligations for filing tax returns, making tax payments and reporting to tax authorities. We perform periodic reviews and self-assessment of our tax filing positions and endeavour to make accurate and timely disclosure to the tax authorities.

The Branch also seeks to build and maintain open, collaborative and transparent relationships with tax authorities based on mutual trust and respect. Where necessary, clarification on tax law interpretations and/or advance rulings from tax authorities will also be sought.