OCC to Weigh Year-2000 Readiness Before Granting Applicants' Requests

The Office of the Comptroller of the Currency will review applicants' preparations for the year-2000 computer problem before approving requests for mergers, new bank charters, or operating subsidiaries, the agency said Friday.

When starting a new institution or adding a branch, applicants must prove that the new business is prepared to begin testing and installing year-2000 fixes by Jan. 1, 1999.

When acquiring another institution, the buyer also must make sure that different software systems can be properly integrated.

"The OCC will assess the applicant bank's financial and managerial ability and plans to remedy any year-2000 deficiencies or system integrations concerns," Chief Counsel Julie L. Williams wrote in a Jan. 23 advisory letter.

Transactions that fail to meet the OCC's guidelines could be denied or could face deadlines for specific remedial actions.

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