|For immediate release|
The Federal Reserve Board today announced final amendments to Regulation CC that will facilitate banks' efforts for Year 2000 readiness.
The amendments will allow banks that consummate merger transactions on or after July 1, 1998, and before March 1, 2000, greater time to implement software changes related to the merger.
The amendments allow these banks to be treated as separate banks until March 1, 2001. Beginning in March 2000, banks that merge will be subject to the normal one-year transition period.
The Board's action recognizes that banks are currently dedicating their automation resources to addressing Year 2000 and leap year computer problems.
The extension of the merger transition period will enable merged banks that were Year 2000 compliant to be treated as separate entities, and to delay merging their systems until after the key century rollover and leap year events of Year 2000.
This will enable these banks to avoid reprogramming and retesting Year 2000 compliant systems prior to the spring of the Year 2000. The extension should also help ensure that banks have sufficient resources to address unanticipated Year 2000 problems that may arise at the turn of the century.
The Board's notice is attached.
|Summary only | Summary and proposed rule (14 KB PDF)|
1999 Banking and consumer regulatory policy