Regulators this week emphasized the need for financial institutions to allay customer concerns about the readiness of banks, thrifts, and credit unions for the year 2000.
"The American people need to know how well prepared the banking system is to meet the century date change," said John D. Hawke Jr., comptroller of the currency, speaking in New York to members of the press.
The message, Mr. Hawke said, is that "financial institutions in the United States, along with their service providers and software vendors, have spent literally billions of dollars getting ready for Y2K and as a result are ready."
Donna Tanoue, chairman of the Federal Deposit Insurance Corp., said customers should also be assured that state and federal regulators are continuing to monitor the progress of financial institutions, including ensuring that people have access to their funds.
Consumers must be confident that "no one has ever lost a penny in a federally insured account and no one will," she said.
The regulatory bodies are doing their part to inform the public of "business as usual" over the Jan. 1, weekend. They are holding press conferences, establishing hot lines, providing financial institutions with videotapes and brochures for customers, and addressing the concerns of specific audiences like minorities and senior citizens.
Ellen Seidman, director of the Office of Thrift Supervision, said consumers should be encouraged to retain bank records and receipts, stay informed, and not bulk up on cash. "A bank is still the safest place to keep your money," she said.
William J. McDonough, president and chief executive officer of the Federal Reserve Bank of New York, said consumers should also be reminded to remain realistic. An out-of-service ATM, for example, does not mean the cash-dispensing system has collapsed. "On any given day there are some cash machines that don't work," he said.
As on any holiday weekend, consumers may see long lines at ATMs, he said, but those who withdraw large sums will succeed only in "making mugging a growth industry over the yearend."
