AL 96-4
Subject: Year 2000 Programming Code Risks

TO:  Chief Executive Officers of all National Banks, Department
     and Division Heads, and all Examining Personnel

Attached is a joint statement by the Federal Financial
Institutions Examination Council that alerts financial
institutions to risks that may be present in existing computer
systems as the industry enters the new millennium (year 2000). 
The issue is whether computer systems will properly recognize
date sensitive information when the year changes to 2000. 
Systems that do not properly recognize such information could
generate erroneous data or cause a system to  fail.

Senior bank management has a responsibility to analyze the risk
of their internal computer systems.  Further, they should consult
with affected vendors and customers to ensure they are addressing
the year 2000 issue.  Based on the risk analysis and
consultations, management should develop and implement an action
plan to deal with any identified system coding changes required
to achieve year 2000 compatibility.

For further information on year 2000 issues, contact the
Examination Process Division in the Office of the Chief National
Bank Examiner (202) 874-5190.



_________________________
Jimmy F. Barton
Chief National Bank Examiner
Date:     June 17, 1996