Foreign Banks Lagging : LUSENET : TimeBomb 2000 (Y2000) : One Thread

So much for industry wide compliance. These are the leaders. What does this say about all the other industries out there?

Foreign Banks Lagging

-- Larry (, July 23, 1999


Third Report: U.S. Securities Industry, Public Companies, and Y2K

Here is a update on the previous link. This is the report itself, although much of it is old information (what else is new). The following quote caught my eye though.

"S.W.I.F.T., which maintains a messaging network through which correspondent banks
advise and confirm payments, also has made efforts to facilitate testing. In March 1998,
S.W.I.F.T. introduced its dedicated Year 2000 Customer Test System, which allows
customers to test business transactions, including S.W.I.F.T. message processing, under
Year 2000 conditions. In August, S.W.I.F.T. began a mandatory test program that is
scheduled to end on July 31, 1999. In January 1999 the Council reported that since the
initiation of the testing program, over 1,400 customers have conducted tests. However,
only 23% of S.W.I.F.T.'s customers have connected to the testing system and only 2% of
S.W.I.F.T.'s customers have transmitted test confirmations under the mandatory testing program. "

-- Brian (, July 23, 1999.

Here is further info on foreign bank status:


"Russia And China Most Vulnerable To Y2K - Bank

Updated 11:41 AM ET July 23, 1999LONDON (Reuters) - Russia and China are the emerging markets most likely to suffer millennium bug problems, while Singapore and Hong Kong are way ahead in their Y2K preparations, investment bank Robert Fleming said.

A research report this week by emerging markets analyst Jonathan Garner said China could suffer severe disruption in its power and water infrastructure, and less serious problems in telecommunications, banking, public health and transport.

Russia's small banking sector and the use of barter and cash would to some extent limit millennium bug damage to the economy, but government services there showed a worrying lack of Y2K awareness, Garner said.

"Singapore and Hong Kong stand head and shoulders above other emerging markets and even most developed markets," he added. "This reflects management quality, financial resources and technological sophistication."

Ranking emerging market countries according to the degree of likely impact on the business environment, the report said Israel and South Africa were also in the low-risk category.

Joining China and Russia on the high-risk list are Zimbabwe, Indonesia, Venezuela, Pakistan and Egypt.

Mexico clearly leads Latin America in Y2K compliance, Garner said, followed by Brazil and Argentina. All three countries are ranked as medium-risk, as are South Korea, Taiwan, Malaysia, the Philippines, Thailand, Turkey and India.

The report said the closer central European countries were geographically to western Europe, the more prepared they tended to be, aided by high foreign ownership in the Polish and Hungarian banking sectors.

The Y2K glitch may cause some computers to mistake 2000 for 1900 because of an old programming shortcut, and tests show some systems may crash or cause errors at the turn of the year.

A State Department report this week said the millennium bug was likely to disrupt the worldwide flow of goods and services, and could spark havoc and unrest in some countries. "

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-- Ray (, July 23, 1999.

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