MUFG, Japan Banks Disrupted by Glitches at Money Transfer System

Taiga Uranaka and Hideki Suzuki, Bloomberg News

Illuminated signage for MUFG Bank Ltd., a unit of Mitsubishi UFJ Financial Group Inc. (MUFG), displayed outside a branch at night in Tokyo, Japan, on Wednesday, Jan. 25, 2023. Japan's mega banks are scheduled to release its third-quarter earnings figures next week. Photographer: Kiyoshi Ota/Bloomberg , Bloomberg

(Bloomberg) -- Japan’s online bank transfer system experienced glitches on Tuesday that disrupted cash remittances at MUFG Bank Ltd. and 10 other lenders.

MUFG said the troubles at the Zengin System have prevented some money transfers to other banks. The core unit of Mitsubishi UFJ Financial Group Inc. was also unable to receive funds sent from other lenders, it said.

A spokesman at the Japanese Bankers Association, which operates the Zengin System, said the glitches emerged after the replacement of relay computers during the long weekend that lasted through Monday.

The problems were yet to be resolved as of late afternoon. The operator said in a statement that it plans to process remittance requests by the end of the day using backup methods.

Resona Bank Ltd., one of the lenders affected, said the difficulties with money transfers started at around 8:40 a.m. Others including Mizuho Bank Ltd. had issues transferring money to and from the 11 banks.

The Zengin System is a nationwide online network for banks handling domestic transfers.

(Updates with comment from operator in fourth paragraph and Resona in fifth)