ABA takes Y2K action.The banking industry is taking action to reduce year 2000 (Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 ) risks. The American Bankers Association The American Bankers Association (ABA) is comprised of banks and other financial institutions. It seeks to promote the strength and profitability of the banking industry by Lobbying federal and state governments, building industry consensus on key issues, and providing products and (ABA Aba (ä`bä), city (1991 est. pop. 264,000), SE Nigeria. It is an important regional market, a road and rail hub, and a manufacturing center for cement, textiles, pharmaceuticals, processed palm oil, shoes, plastics, soap, and beer. ) announced a comprehensive plan to provide banks with the education and detailed instruction necessary to prepare their computer systems for Y2K. Most existing computer programs use only two digits to identify the year. If these programs are not updated, many computer applications could fail by or at January 1, 2000. The ABA plan comes little over a month after the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). took its first enforcement actions against three Georgia banks that have prepared inadequately for Y2K. The FDIC cease-and-desist orders Cease-and-desist order An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company or a depository institution official to terminate unlawful, unsafe or unsound banking practices. were issued to ensure that information systems are in place, internal controls are maintained and the banks' computer-related operations will not fail on January 1, 2000. The ABA plans to issue more than 60 educational products, organize national conferences and telephone seminars and establish an industry mentorship alliance--a research and communications dream team from banks of all sizes, top Y2K solutions vendors and other Y2K experts. For more on the Y2K project, call the ABA customer service center at 800-338-0626. |
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