The Federal Deposit Insurance Corporation, which insures deposits in U.S. banks and thrift institutions, does not have enough information on the y2k status of U.S. banks. This is the assessment of the government's General Accounting Office.
This appeared in AMERICAN BANKER (Feb. 11).
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The Federal Deposit Insurance Corp. is not gathering enough information from banks to precisely determine their readiness for year-2000 computer issues, according to a General Accounting Office report released Tuesday.
"We believe that neither the initial nor the follow-on assessment work program (undertaken by the FDIC) is collecting all the data needed to determine where the banks are in the year-2000 correction process," the GAO's Jack L. Brock told Senate Banking's financial services subcommittee. To remedy the problem, the GAO is suggesting the FDIC tell its examiners to ask banks a series of new questions.
The GAO's recommendation comes at a bad time for the FDIC, which acknowledges it got a late start in assuring the year-2000 compliance of the banks it supervises.
The FDIC is trying to meet a June 30 deadline for conducting on-site reviews of its 6,200 state-chartered nonmember banks. So far it has completed about 2,000.