A state bank commissioner hinted Thursday that the Year 2000 bug might spell trouble for small financial institutions.
At a US House Banking Committee hearing on the Y2K problem, Delaware Bank Commissioner Timothy McTaggart admitted he was feeling "particular concern about small bank preparedness."
However, while McTaggart said it would be "premature" to promise that all banks will be fully Year 2000-compliant come 31 December 1999, he said that state bank regulators are taking all the necessary steps to help state-chartered banks fix the Y2K bug.
McTaggart testified on behalf of the Conference of State Bank Supervisors, the professional association of state officials responsible for overseeing the nation's 6,805 state-chartered banks and more than 400 state-licensed foreign banking offices. "CSBS believes that the banking industry will be prepared for the century date change," he said.
McTaggart said that increasing public awareness of the problem in all lines of business and government is "absolutely essential" to meet the formidable challenge. To that end, he pointed to a joint venture between the CSBS, the American Bankers Association, and the US Chamber of Commerce, which produced a videotape about Y2K preparation targeted to small businesses.
"The problem is certainly critical and requires immediate attention," said McTaggart. "However, with planning, prioritization, and a lot of hard work, it is not insurmountable."
