The Zengin System
Zengin System relays domestic credit transfers, connecting banks online as well as clearing funds following the transactions.
The Zengin System started in 1973, expanded its coverage of participants, it currently covers almost all private banks in Japan.
Participants to the Zengin System
Banks, Shinkin banks (credit associations) *, credit cooperatives*, labor banks* and agricultural cooperatives*
*Including central organizations of each type.
Operations of the Zengin System
Data of fund transfer advices sent by banks are forwarded by the Zengin Center to the recipient's bank in real time. At the same time, the Zengin Center accumulates amounts in payment instructions sent by banks. After a business hours ended, Zengin Center develops a report of total amounts of credits/debts between banks and Zengin Center in the day then send the report to the Bank of Japan (BoJ) online. Based on the report, the BoJ credits or debits the current account of each bank or that of Zengin - Net held at the BoJ. With this action, the settlement between banks is completed.
7th Generation Zengin System
The Zengin System is undergoing a series of upgrades to increase transaction volume, improve security and for other reasons. The current system is the 7th generation.
The 7th Generation Zengin System retains the functions and structure of its predecessor and features the latest equipment, aiming to increase capacity and processing performance, enhance cyber security countermeasures and reduce power consumption from the perspective of improving safety and reliability.
The Foundation of the Financial System "Zengin System"
5-Minute Lesson! The Zengin System
4-Minute Lesson! The More Time System and ZEDI