Mizuho Financial Group, Inc. (Group CEO: Yasuhiro Sato) ("FG" or "the Company") and Mizuho Bank, Ltd. (President & CEO: Yasuhiro Sato) ("BK" or "the Bank") today received a administrative order by the Japanese Financial Services Agency pursuant to article 52–33, paragraph 1 and article 26, paragraph 1 of the Banking Act. We gravely accept and regret such order and would like to take this opportunity to express our most sincere apologies to our valued customers and other stakeholders for the inconvenience that we have caused.
As set forth in the "One MIZUHO New Frontier Plan – Stepping up to the Next Challenge," dated February 26, 2013, Mizuho Financial Group ("Mizuho") aims to strengthen group governance and improve group management efficiency as well as advance Mizuho's business model towards the new frontier of finance through the transition to the single bank and single securities structure, transformation into the new group capital structure and group management structure and implementation of various measures such as the enhancement of group governance which supports unified group strategies. In order to fulfill our social responsibilities as a member of the global financial community, we have made decisions as set forth below in relation to establishing a strong governance system and strengthening our crisis management capabilities, with an aim to further strengthen our group governance and to further facilitate the progress of our business model.
We steadily implement the business improvement plan that has been submitted to the Japanese Financial Services Agency on October 28, 2013 based on the business improvement order (No. 2094) received on September 27, 2013, and will consider implementation of additional measures based on the administrative order received today.
- Establishment of a strong governance system
We have decided basic policies for the establishment of a strong governance system, including the transformation into a "Company with Committees" as defined in the Companies Act and additional appointment of external directors, and have decided to conduct necessary studies and preparations in order to actively internalize a global and advanced governance framework that anticipates the trends of laws and regulations surrounding corporate governance and principles of the regulations of the Basel Committee on Banking Supervision.
- Strengthening crisis management capabilities
In addition to strengthening the ability to respond to emergency situations or events of emergency, we will establish designated organizations responsible for crisis management at FG and BK in order to improve our ability to detect signs and indicators of crises in advance. We will also improve our crisis management capabilities as a group through involving external experts by establishing a special sub–committee at Business Continuity Management Committee of FG.
Please refer to the attachment (PDF/41KB) for details.