My Aussie bank won't respnd to Y2K questionsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
My bank (in Sydney) gave me a brochure saying everything was Y2K OK, bank as usual, we've been working on this, all problems fixed etc.
I spoke to a Supervisor, asking about our Capital Adequacy Reserves (same as the US Fractional Reserve) and she'd never heard about it. This is someone with many years in the banking industry! She said she'd find out and call me. Nothing. So I faxed the Manager, same question, after 10 days, same response - zilch. Today I faxed the Managing Director of the bank, asking was it true that only a very small proportion of funds were actually available should people, in any significant numbers, want their money back. I won't hold my breath waiting for an honest reply, but I think it indicates that when confronted with a direct question and asked for specific information, the banks don't know how to handle it. Maybe banks are beginning to realise that they face their worst nightmare - bank runs and closure.
-- Con cerned (Concernedabout@banks.com), November 04, 1999
Whatever you do, don't print out the following doc ument, or the dreaded, secretive 44-page document referenced within. The bankers themselves might start the panic!!
International Y2k Risk
Prepared for the U.S. Senate Committee on Y2k by International Monitoring [.pdf file]
...Largest risk is in banking
A significant risk... is international systemic banking risk. The months of the Y2k period will see institutional banks operating in the riskiest environment ever seen... [p. 2]
International institutional banking is a global network. International Monitoring believes threats to international banking could pose the greatest Y2k risk. A seperate 44-page section of the statement has been submitted that covers these risks.
At this point, we do not feel it is prudent to publicly discuss the detailed risks faced by international banking in a broad media forum such as the one before us today.
A rapid change in the awareness of Y2k risks could affect amounts measured in the trillions of dollars and put international finance itself at systemic risk. Y2k will shift banks operating and market risk environments significantly. We strongly advise regulators and those providing fiscal oversight in the public and private sectors to consider the implications of these risks. [p.8]
...The largest Y2k threat facing the world may be international financial liquidity. Perceptions of increased risk, leading to increased credit prices could affect the already meager Asian economic recovery...
The best action we can suggest to the senate committee is a policy of broad public communication about the real potential for errors and large system failures. This should involve a cautious, but not inflammatory tone. Y2k will hit in unsuspecting and surprising ways. A calm considered response by all involved will hopefully limit the depth and duration of the impact. [p. 10]
-- Why be concerned (firstname.lastname@example.org?), November 04, 1999.