Phase III of Y2K Supervision Program
Guidance on Ratings and Enforcement Actions
July 15, 1999
Circular No. 11167

"Year 2000 Readiness Disclosure"

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:

The Federal Reserve's Phase III supervision program (see our Circular No. 11135, dated February 8, 1999) has entered into the final six months. In light of the importance of identifying financial institutions whose mission-critical systems are not Year 2000 ready before the century date change, the supervisory letter provides additional guidance with respect to ratings and re-emphasizes previous guidelines concerning enforcement actions against institutions that may not have met the FFIEC's milestone dates.

If you have any questions, please contact, at this Bank, Sarah Dahlgren, Vice President, Bank Supervision Group, or Ira Adler or Joseph Galati, Examining Officers, Advisory and Technical Services, Bank Supervision.