News Release
Financial Sector Preparations for the Year 2000 - Issue 7
03 December 1999
The Bank of England publishes its seventh and final report on the financial sector's preparations for the Year 2000 (the "Blue Book") on Friday 3 December.
The UK financial sector remains confident it is well prepared for the millennium date change. This confidence is based on extensive preparations; on testing and re-testing. The high degree of co-operation between individual financial institutions has given institutions confidence in the compliance of others. Standard business continuity plans have been reviewed and enhanced to deal with Year 2000-specific factors, which means the sector should be well placed to deal with any operational problems which occur.
In his foreword to the Blue Book, Eddie George, the Governor of the Bank of England says:
"As we enter the final stage of what has been a long, and often complex, programme of work it is vital that efforts are not relaxed. The financial sector will be judged on how it handles the transition to the Year 2000. Public and media interest will be high, so it will be important that the remaining preparatory tasks, and the management of events over the transition period, are approached with the same rigour that has been evident throughout the earlier preparations for Year 2000.
I have every confidence that the UK's financial sector will in fact progress smoothly into the new millennium."
John Trundle, Head of the Bank's Market Infrastructure Division said:
"The Bank welcomes the efforts of many financial sector infrastructure providers in setting up 'millennium operating regimes'. These arrangements will help co-ordinate communication and decision-making during the millennium changeover period. Many public bodies, both in the UK and internationally, have established similar 'millennium operating regimes' (such as the Bank's own 'Blue Room'), to co-ordinate the flow of information, and ensure that any problems can be dealt with promptly and effectively."
A large part of this Blue Book consists of the contact details for the main financial infrastructure providers over the millennium changeover period (including institutions in twelve other major financial centres), together with summaries of their "millennium operating regimes". There is an update on recent financial market developments, which have been encouraging, and a brief report on the second joint Bank and FSA Year 2000 symposium, which was held on 1 November.
The Blue Book also has a description of the "millennium operating regimes" of some institutions with wider Year 2000 co-ordinating responsibilities: the Bank and the FSA jointly for the UK financial sector; the Government Millennium Centre for critical parts of the UK infrastructure; APACS for payment systems, cash and retail banking; and the Joint Year 2000 Council for central banks and financial sector regulators around the world.
Notes to Editors
- The Bank established its Blue Book series to raise awareness of the Year 2000 problem, and to share information about the Year 2000 preparations of the financial infrastructure providers. The Bank has also sought to encourage co-operation, and the development of best practice within the financial sector.
- The first Blue Book was published in February 1998. This, and subsequent issues, gave details of the Year 2000 remediation and testing work of payment and settlement systems, clearing and netting services, financial information and telecommunications services. The third issue (October 1998) focussed on the issues surrounding testing. The third and fourth (March 1999) issues gave guidance on approaches to contingency planning and risk mitigation. The fifth issue (July 1999) contained reports on the Year 2000 preparations of twelve other major financial centres, and of the major card payment schemes.
- The sixth issue (October 1999) focussed on the contingency and event management plans of the major UK financial infrastructure providers, together with an update on the preparations of twelve major financial centres. It described the plans for banknote distribution over the millennium transition, including the very substantial quantity of notes available to meet potential demand. The sixth Blue Book also reported the measures the Bank has taken to ensure an adequate supply of sterling liquidity through the millennium period: a permanent expansion of eligible collateral; and the temporary introduction of longer term repos.
- All seven Blue Books are available on the Bank's website at: www.bankofengland.co.uk/millennium/y2kintro.htm
