GGD-99-62 Year 2000: Financial Institution and Regulatory Efforts to Address International Risks

U.S. financial institutions actively participate in international financial markets as dealers of foreign exchange and derivative products, lenders to foreign organizations, and investors in foreign securities. Concerns have been raised that U.S. financial institutions could face significant problems in operating abroad--along with the risk of huge losses on their trading and investment activities--unless foreign markets and financial institutions have adequately prepared their computer systems for the Year 2000 problem. This report assesses the extent to which (1) large, internationally active U.S. financial institutions have been addressing international Year 2000 risks; (2) U.S. banking and securities regulators were overseeing these risks for the institutions they regulate; (3) large foreign financial institutions and their regulators are addressing Year 2000 risks; and (4) other issues that may require attention before the upcoming date change at the turn of the century.