According to a report from CNBC TV18 published on November 6, 2026, the disruption began around 1:30 p.m. local time and has suspended ATM withdrawals and transfers, counter services at branches, and internet banking across the affected institutions.

Shinkin Central Bank, which jointly operates the core systems used by the country's cooperative shinkin banks, confirmed that the outage has hit every one of the 128 institutions located west of the Tokai region. In total, operations at 3,430 branches have been interrupted, with no confirmed timeline yet for full restoration.

The bank traced the breakdown to a communications failure involving equipment at its West Japan Centre, the facility that oversees the regional network. "An equipment malfunction is suspected, although the precise cause remains unclear," the bank stated in information reported by CNBC TV18. Officials added that no unauthorized access had been detected and that a cyberattack was not currently suspected.

Engineers are working to restart the affected systems and pinpoint the exact source of the failure. The Shinkin Joint System, used by 236 shinkin banks representing more than 90 percent of all such institutions in Japan, operates on separate eastern and western infrastructure. The latest outage remains confined to the western network, while shinkin banks in eastern Japan continue to function normally.

The interruption threatens to stall routine banking for individuals as well as payments and fund transfers relied upon by local businesses. Sole traders and small and medium-sized enterprises that depend on regional shinkin banks for day-to-day operations face particular disruption while services remain offline.

Shinkin Central Bank continues efforts to identify the root cause and restore full functionality, while updating the affected lenders. As of the latest reporting, there are no indications that the problem has spread to the eastern Japan network.