Japanese banks are illiquid, large, and still not y2k compliant. This story reveals just how concerned the Japanese Central Bank is. If the Japabese banks go down, the world economy will go down. Any happy-face predictions must contend with the Japanese banking system, which is not even remotely compliant.
Future historians will be amazed that stories like this one had no measurable impact on world stock markets.
* * * * * * * *
TOKYO, July 22 (UPI) _ The Bank of Japan says it is revising its on- line network system connections with private financial institutions to head off potential problems from the so-called ``millennium bug''.
Japan's central bank says Wednesday it is seeking to adjust its computer network system connections on account settlements to ensure a smooth transition into the next century.
The BOJ plans to have work completed on updating the system by early 1999 to head off a possible total shutdown of operations when the calendar turns to ``00'' in the year 2000.
Bank officials say a ``millennium bug'' shutdown will occur if computer systems are not reprogrammed, since most programs use a double- digit system for dates.
Systems recognize the year 2000 as ``00'' which could be confused with 1900 and not be recognized as a date later than ``99'' as in the year 1999.
If networking systems are not ready by 2000, errors will occur in calculations of interest rates and other core banking operations.
The central bank says that during its regular inspections, it will urge financial institutions to take action to cope with the year-2000 problem.
Japan's Kyodo News agency reports that Japan is just starting to deal with the millennium bug problem compared with the United States where financial authorities have already put together specific time-lines and action plans.
_- Copyright 1997 by United Press International. All rights reserved. _-