Make your own free website on
Recommended Resources Offshore havens, asset protection, global investing and other useful techniques.
The Year 2000 Bookshelf Books to help your evaluate the Y2K problems you face.

Gary North's Y2K Links and Forums - Mirror

Summary and Comments

(feel free to mail this page)




1997-08-06 10:15:19


Six Major Internal Risks to Every Bank



Comptroller of the Currency Eugene Ludwig told the Senate Banking Committee what could go wrong in banking.

* * * * * * * * *

The U.S. banking industry is particularly affected by the year 2000 problem because nearly every aspect of the business is dependent on computer systems for processing transactions and providing information. Technology is an integral part of the banks' interconnected information systems, where they exchange data daily with their customers, correspondents, vendors, other financial institutions, clearing houses, and corporate borrowers. Therefore, any malfunctions caused by the century date change could have an impact on a bank's ability to meet its obligations. Or, malfunctions could have an impact on the ability of others to meet their obligations to the bank. Some examples of bank systems where year 2000 problems may emerge include:

Lending systems: To calculate interest payments, due dates, and past due amounts;

Investment systems: To calculate accretions, amortization, and yields;

Deposit systems: To calculate interest payments, overdrafts, and other fees;

Accounting systems: To calculate accruals, depreciations; income and expenses;

Fiduciary systems: To perform portfolio analysis, stock transfers; and calculate dividends and maturity dates;

Management information systems: To integrate information by time period (p. 3).


Return to Category: Banking

Return to Main Categories

Return to Home Page