NR 98-96
September 17, 1998

                                
Acting Comptroller Cites Testing as Critical Phase in Year 2000
                          Preparation
  
Washington, D.C. --      Acting Comptroller of the Currency Julie
L. Williams told Congress today that the nation's banking
industry is now entering one of the most critical phases in its
effort to deal with problems associated with the century date
change -- the actual testing of computer systems. 

"The results of these tests will say much about how prepared
banks truly are to meet the Year 2000 deadline," she said in
testimony before the House Committee on Banking and Financial
Services. 

Ms. Williams said the key to avoiding a wave of last-minute
crises is to be proactive and to identify and deal with Year 2000
problems in national banks as soon as possible.

"That is why we have adopted a strategy under which each national
bank will be examined again on-site -- not once, but twice,
before June 30, 1999," Ms. Williams said.  "These examinations
should give us a clear, accurate, and, most of all, timely
picture of each bank's Year 2000 progress and of any problems
that remain."

The acting Comptroller also voiced support for the so-called "Good
Samaritan" bills pending in the House and Senate which she said
would promote voluntary disclosure and a healthy exchange of
information on Year 2000 issues.

Ms. Williams highlighted another area of concern with countries that
have been slow to acknowledge and confront the Year 2000 challenge,
and unwilling or unable to provide clear and consistent information
about their own remediation efforts. 

Examiners at the Office of the Comptroller of the Currency (OCC)
assigned to the most internationally active banks are working
diligently to develop contingency plans to mitigate the Year 2000
risks that arise from foreign markets.  The OCC is also working with
international
organizations comprised of financial market regulatory authorities
and private sector financial firms to achieve more effective action,
information-sharing and disclosure on Year 2000 issues. 
                                 
                               # # #

The OCC charters, regulates and examines approximately 2,600 national banks and
66 federal branches and agencies of foreign banks in the United States,
accounting for 58 percent of the nation's banking assets.  Its mission is to
ensure a safe, sound and competitive national banking system that supports the
citizens, communities and economy of the United States. Its mission is to ensure
a safe, sound and competitive national banking system that supports the citizens,
communities and economy of the United States.