The Year 2000 problem is pervasive and complex. Many computer systems may not recognize or process information with dates beyond December 31, 1999. Unless corrected, the Year 2000 problem could have a substantially negative effect on the financial services industry.
Time is critical.
Correction of the Year 2000 problems will, in many cases, require a file conversion. Some institutions and data centers will not have available sufficient disk space or time to perform the conversion and run parallel to the old system for a period of time to ensure that all problems have been resolved. Also, as time passes valuable Year 2000 resources may become more scarce and costly. These Year 2000 issues will absorb resources. Solving the problem will generally not add value to the financial institution nor will it likely improve other performance indicators such as capital and earnings.