Interagency Statement on the Risks to
Involving Computer Systems in the New Millennium
The interagency Federal Financial Institutions Examination
Council (FFIEC) has issued the attached statement on the substantial
risks to financial institutions involving their computer systems
as the industry enters the new century (year 2000). These
risks are attributed to the programming code in existing computer
systems that may result in inaccurate calculations based on
any two-digit year field containing the value "00."
The FFIEC statement alerts financial institutions, servicers,
and vendors to the need to adequately address the risks, including
system failures or erroneous data, associated with the existing
programming code. The issue affects every financial institution
and all aspects of computer systems.
During regular supervisory reviews, examiners will review
each institution's year 2000 plan. For more information, please
contact your Division of Supervision regional office.
Nicholas J. Ketcha Jr.
The attachment to this Financial Institution Letter is not
currently available in electronic format. Until it is in a
form that will allow us to post it to the internet, you may
obtain hard copy or fax from:
Public Information Center
801 17th St. NW
Washington, DC 20434
ph: (703) 562-2200
Distribution: FDIC-Supervised Banks (Commercial and