OWN CORRESPONDENT, Johannesburg | Thursday 10.15am.
THE South African Reserve Bank cleared local banks on the Year 2000 problem, saying there is “no reason whatsoever” for massive withdrawals ahead of the millenium.
Registrar of Banks Christo Wiese said banks have been prepared for potential millenial problems because of extensive Reserve Bank pressure. He was speaking at the lauch of a booklet on the problem prepared by the Financial Services Board, “Year 2000 Preparations in the South African Financial System.”
Banks which are not compliant by September 1999, and some are not yet compliant with Year 2000 procedures, will be required to revert to a paper-based system, according to Bob Tucker of the Sa Banking Council.
Widespread problems with computer systems of many types, particularly banking account and interest problems, have been predicted as the millenium shifts and computer systems are unprepared to account for it.
The booklet is part of a campaign to prevent a run on bank deposits as the change approaches, and avoid a systemic financial crisis. The Reserve Bank has cancelled leave for employees over Christmas and New Year’s, in preparation for effects from outside the banking system filtering in.
The banking authorities expressed confidence in public utilities Eskom and Telkom, despite worries about “areas we don’t have control of”, which may cause banking problems.