Small banks address year 2000 challenge

Abstract

Many computer programs used by banks record the date using only 2 digits. Unchanged, these programs, many of which calculate interest, loan terms, amortization schedules, and deposit maturities, will go haywire when the year 2000 arrives. At the extreme, computer systems may fail altogether. Federal regulators plan to assess every bank's conversion efforts and plans by mid-1998. Experts say companies have to be ready to test their systems by the end of September 1998 because 1999 will be the last year available for making major corrections.