Jimi Says Reorganization ‘Desirable’ After Mizuho Reports

Mizuho Financial Group Inc. (8411)’s reported reshuffle of management and reorganization of its units following a computer systems glitch is “desirable,” said Japan’s Financial Services Minister Shozaburo Jimi.

The group will appoint Yasuhiro Sato, who heads Mizuho Corporate Bank Ltd., as president to replace Takashi Tsukamoto, local media reported this week. The bank also aims to merge its corporate and retail banking units by 2013 as Satoru Nishibori, president of the retail unit, steps down, the reports said.

“Generally speaking, it’s desirable for companies to boost efficiency and do their best to have appropriate management and positions for employees,” Jimi told reporters today when asked about the reports on Mizuho. He declined to comment on his agency’s inspection of Mizuho that began after the retail banking unit’s computer system malfunctioned in March.

The Nikkei newspaper reported on May 19 that the Financial Services Agency will issue a business improvement order to Mizuho next week. System glitches since March 15 at Mizuho Bank Ltd. delayed transactions worth more than $10 billion, including salary payments, curtailing access to funds in the wake of a magnitude-9 earthquake and tsunami on March 11.

Mizuho, Japan’s third-largest bank by market value, said this week it “isn’t specifically considering” a group restructuring. Masako Shiono, a spokeswoman for the Tokyo-based bank, declined to comment on the personnel changes at the time.

Mizuho shares rose 1 yen to 130 as of 10:06 a.m. on the Tokyo Stock Exchange.

To contact the reporter on this story: Shingo Kawamoto in Tokyo at skawamoto2@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net.

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