Japan regulator steps in to fix Mizuho's computer flaws

FILE PHOTO: A pedestrian is reflected in a sign showing the logo of Japan's Mizuho Financial Group Inc outside the bank's headquarters in Tokyo, Japan, May 15, 2015. REUTERS/Yuya Shino

TOKYO (Reuters) - Japan's banking regulator will take a role in overseeing computer systems at Mizuho Financial Group's retail banking arm after glitches that exposed failings at the country's third-largest lender despite $3.6 billion in upgrades.

The Financial Services Agency's unusual move reflects the deep regulatory concern over deep-rooted technical problems at Mizuho Bank, which the FSA ordered to improve its business.