To the Chief Executive Officers of All State Member Banks, Bank Holding Companies, Edge and Agreement Corporations, and Branches and Agencies of Foreign Banks in the Second Federal Reserve District, and Related Vendors Serving These Organizations:
The member agencies of the Federal Financial Institutions Examination Council (FFIEC) have monitored the progress of financial institutions in addressing the Year 2000 challenge since the issuance of their interagency statement on Year 2000 in May 1997 (Circular No. 10951, dated May 14, 1997), and believe that additional guidance is necessary. Accordingly, the FFIEC has issued the third in its series of advisories on Year 2000. Entitled "Safety and Soundness Guidelines Concerning the Year 2000 Business Risk," it is intended to focus attention on the supervisory agencies' expectations of bank senior management and the board of directors concerning the business-wide Year 2000 risks posed by vendors, business partners, counter parties, and major loan customers and provides reporting guidelines for information needed by the board of directors. It also clarifies prior regulatory guidance and current expectations relating to the certification of products and services as Year 2000 compliant.
Financial institutions may choose to forward a copy of the new Interagency Statement to their vendors and third-party service providers.
Should you or your staff have any questions regarding the statement, please contact George Juncker, Vice President, Bank Supervision Group, or William Francis or Thomas Wines, Examining Officers, Bank Supervision Group, respectively, at this Bank.