Most banks ready for Y2K
WASHINGTON (AP) - Federal regulators reported Monday that 99%
of the nation's banks, thrifts and credit unions have completed testing for
the Year 2000 bug in their computer systems.
Among the nation's 10,335 banks
and thrifts, 10,246 received the
highest possible rating for
readiness, 78 were told they
needed to improve and 11 drew
unsatisfactory ratings, according to
the Federal Deposit Insurance
Corp. A similar breakdown among the 10,807 credit unions included in
the overall assessment wasn't immediately available.
The regulators said most financial institutions, a number they did not
specify, already are using computer systems that are Year 2000-compliant
every day without problems.
The institutions had to meet a June 30 deadline for testing.
The report came from the Federal Financial Institutions Examination
Council, which consists of bank regulatory agencies including the Federal
Reserve and the Federal Deposit Insurance Corp.
''The agencies are confident that, based on their reviews, financial
institution customers will be able to conduct business as usual both before
and after Jan. 1, 2000,'' the council said in a statement, adding that
regulators are ''closely supervising'' the few institutions that are lagging in
their readiness.
The Federal Reserve recently approved a plan to make special loans to
banks, thrifts and credit unions that might need emergency money because
of consumer fears about system breakdowns caused by computers that
can't handle the Year 2000 date change.
Last week, Fed Chairman Alan Greenspan said in congressional testimony
that banks will be the safest place for people to keep their cash at the end
of the year.
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