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 disruption began at around 1.30 pm on November 6, according to Shinkin Central Bank, which jointly operates the core banking systems used by the country's shinkin banks.
The outage has affected all 128 shinkin banks located west of the Tokai region. ATM withdrawals and transfers, deposits and withdrawals at branch counters across 3,430 branches, and internet banking services have been suspended. There is no confirmed timeline for the restoration of services.
Shinkin Central Bank said the disruption stemmed from a communications failure involving equipment at its West Japan Centre, which oversees the banking network in the region.
An equipment malfunction is suspected, although the precise cause remains unclear. The bank said no unauthorised access had been detected and that a cyberattack was not currently suspected.
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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, accounting for more than 90% of all such banks in Japan. Its infrastructure is split between eastern and western Japan, with the latest disruption confined to the western network. Shinkin banks in eastern Japan continue to operate normally.
The outage could disrupt everyday banking as well as payments and fund transfers for local businesses, particularly sole traders and small and medium-sized enterprises that rely on regional shinkin banks.
Shinkin Central Bank is working to establish the exact cause and restore services, while keeping affected lenders informed. For now, there are no reports of the disruption spreading to the eastern Japan network.
