To the Chief Executive Officers of All Bank Holding Companies, State Member Banks, Edge Corporations, and Branches and Agencies of Foreign Banks, and Others Concerned, in the Second Federal Reserve District:
As part of our continuing efforts to raise the industry's awareness of the risks associated with the approach of the Year 2000, the Federal Reserve has produced a video entitled "Year 2000 Executive Awareness" which is designed for viewing by your board of directors and senior management. Governor Edward W. Kelley, Jr., a Member of the Board of Governors, who introduces the 10 minute video, focuses executive management's attention on the need to address this business issue directly. The video goes on to discuss the pervasiveness of the potential problem and a five-phase approach that addresses the issue. The FFIEC'Ss May 5, 1997 interagency Statement entitled "Year 2000 Project Management Awareness", which was distributed to you with our Circular No. 10951, presents the five-phase approach in greater detail.
The video reiterates the importance of the two recommendations that were included in the FFIEC statement. First, critical systems should be identified and related priorities set for Year 2000 work by the end of the third quarter of 1997. Second, for critical systems, programming changes should be largely completed and testing should be well underway by December 31, 1998.
Also enclosed with the video is a "Quick Reference Card" that can be reproduced to provide highlights of the presentation and to serve as an easy reference for use by directors and senior management. We hope that you and your colleagues will find the video and reference card to be of some assistance in developing and implementing your organization's Year 2000 project management plans.
The Interagency Statement, as well as other information pertaining to the Year 2000, is available on the FFIEC World Wide Web site and via a FAX BACK phone service at 888-882-0982.
Should you or your staff have any questions on this subject, please contact George Juncker, Vice President, or Thomas W. Wines, Examining officer , at this Bank. Questions regarding the Federal Reserve's plans to make its systems Year 2000 compliant and able to service financial institutions may be directed to Bruce Cassella, Vice President, Bank Services Office.