In early June, 190 banks in 19 countries participated in a little virtual reality. All 190 banks pretended it was January 3, 2000, the first day of business to face the millennium bug. While many U.S. banks have already conducted a variety of simulations, this drill was the first worldwide exercise. The goals were to be certain the backbone of international payment systems will function normally and to make sure that the upgrades and fixes installed at banks do not interfere with banks' ability to "talk to each other."
The test was initiated close to home, at the New York Clearing House. The NYCH reported that settlements were processed without problems. "I think this will go a long way to show the world that the world payment system is intact and ready to go for 2000,'' said NYCH senior vice-president and director of information clearing systems, George Thomas. Thomas added, "We've had reports from the European Bankers Association, Australia, CHAPS in Great Britain, TARGET (the European Central Bank's payment system), France, Germany, Hong Kong, Italy, Japan, Korea and Poland - and they are all excellent."
So, unless everyone runs to their ATM this New Year's Eve and withdraws all their funds, we should be in good shape!
