| For immediate release |
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The Federal Reserve Board announced today that the Reserve Banks will adhere to a standard holiday schedule next year and remain open for normal operations on December 31, 1999.
Although various financial and trade groups have been considering whether a banking holiday on December 31, 1999, would ease potential disruptions that may be caused by the century date change, the Board believes that a banking holiday is not warranted. The Board said bank resources would be better spent preparing for the year 2000 change-over rather than addressing the operating, financial, legal and other consequences that would flow from a date-change holiday. As part of its year 2000 preparations, the Federal Reserve plans a comprehensive program for banks to test computers used for Fedwire transfers, automated clearing house transactions, and other central bank services for compliance with the date change. A schedule will be issued shortly with actual testing beginning at mid-year and continuing through 1999. This program will permit banks to send test transactions across a variety of dates pertaining to the century date change. Testing for depository institutions will be coordinated through their district Federal Reserve Banks. |