But it is not enough simply to evaluate bank efforts to correct the Year 2000 problem if much of their data processing is done outside. We must also consider the progress vendors are making toward Year 2000 compliance. The OCC recognizes this. The banks must recognize this. And vendors too must be aware of the impact they can have on the safety and soundness of the banks to which they provide services.
Banks are in the business of taking risks.
That is why they exist, because they manage risk for savers better than many savers could on their own, either because of skill or sheer size. This basic calculus does not change simply because banks are increasingly using technology in product development, service delivery or in performing key operational processes. The OCC has no interest in preventing that risk-taking. Our intention is simply to be sure that any risks taken are measured and appropriate, and properly managed. By doing our job properly, and adapting our supervision to reflect market realities, we believe we will help to ensure that these new activities enhance the banking system and generate real gains for the economy.