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Regulation CC Proposal to Facilitate Y2K Efforts
January 26, 1999
|Circular No. 11133|
Proposed Temporary Extension of
Comments Due February 1, 1999
To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The following is from a statement by the Board of Governors of the Federal Reserve System:
The Federal Reserve Board is requesting comment on proposed amendments to Regulation CC to temporarily extend one-year merger transition provisions, in order to facilitate banks' efforts for Year 2000 readiness.
Comments, originally requested by January 4, 1999, has been extended to February 1, 1999.
The proposal would provide additional time for banks that merge between July 1998 and May 1999 to implement software changes. The proposal would allow these banks to continue to be treated as separate banks until June 1, 2000. The normal one-year transition period would resume for mergers effected after May of 1999.
The proposal recognizes that banks are dedicating a large amount of their automation resources to renovating and testing software and replacing noncompliant systems to address Year 2000 computer problems.
During this period, banks may be challenged to make and test other programming changes, including those needed to comply with merger transition provisions of Regulation CC.
The Board is seeking comment on the need for the proposal and whether the proposed liberalization of the regulation's merger transition provisions are adequate to avoid conflicting with programming and testing resources necessary to manage banks' readiness efforts for Year 2000.
The text of the Board's official notices is available as a file (pdf - 15kb). Comments should be submitted to the Board by February 1, 1999.