General Industry Letters
Mortgage Banking Letters
The Year 2000 EDP Survey
September 25, 1996
TO THE INSTITUTION ADDRESSED
Re: The Year 2000 EDP Survey
Attention of the Chief Executive Officer
The purpose of this letter is to advise you of the Department's expectations concerning how supervised entities should be planning to meet the unique EDP challenges posed by the year 2000. As you are undoubtedly aware, much of the software and hardware currently in use do not have the ability to accurately calculate dates beyond the year 1999. Due to the serious disruptions that would be caused by any inability of EDP systems to correctly process date and calendar functions, it is imperative that management identify the problem and institute corrective action as soon as feasibly possible.
In order to apprise us of the status of this situation within your institution, please forward the following information by November 15, 1996 to: State of New York Banking Department, Two Rector Street, New York, NY 10006, Attn.: Automation Unit, 20th Floor:
- Has management determined the ability of its data processing system, whether performed "in-house" and/or by data processing servicers, to correctly calculate and effectively utilize date and calendar data after the year 1999? If not, when will this review be performed?
- Has management found, or does it anticipate, any major problem in modifying its data processing system, if necessary, to accurately process date and calendar data after 1999? If so, please explain.
- Will your institution's data processing system, whether provided "in house" and/or by data processing servicers, be able to adequately service your institution after 1999? If so, by what date has this, or will this, be accomplished. If not, explain.
- List all automated applications, such as DDA, TDA, loans (consumer, commercial, installment, mortgages, etc.), general ledger, securities, borrowings, etc., indicating the source of processing: performed in-house or by an outside servicer; the mode of processing: batch, on-line, real time; and the source of the software: developed "in-house" by the institution's own programming staff, by contractors specially for the institution, or purchased or leased packages. In connection with this, please furnish the following information:
OWN ("In-house") COMPUTER OPERATIONS
If your institution operates its own data center(s), please provide the address(es) telephone and fax number(s) of your data center(s) and the name(s) and title(s) of the appropriate contact officer(s) in the center(s). Also provide a schedule of EDP equipment currently in use, and any plans with target dates for major conversions. If equipment is leased, indicate the lessor's name, address, and terms of the lease. Please include:
Manufacturer's name, model number, and mainframe storage capacity.
Type and version of operating system.
Data communication equipment.
Front-end devices or terminals.
Other major equipment.
Primary programming language.
Does your institution maintain its own programming/systems development staff? If so, indicate the size of the programming staff, location(s) and the nature of programming performed.
Indicate the name and source of the institution=s software programs. If purchased or developed by outside contractors, please indicate the name and addresses of these vendors/contractors.
List of microcomputers and the applications processed on them indicating:
- The total number and type by functional area.
- The applications processed including the software utilized, its source and the location of the processing.
- Your estimation of the importance and sensitivity of the information contained in the applications, indicating high, medium or low importance and/or sensitivity
SERVICES PROVIDED TO YOUR INSTITUTION BY OTHERS
Provide the name and location of each facility performing EDP services, whether or not the facility is a related entity, and, if so, the nature of the relation to your institution , and the respective applications processed.
Provide a list of applications scheduled for conversion within the next twelve months with an outside servicer.
Please provide a list of Electronic Funds Transfer Systems utilized by your institution. These include both wholesale systems (CHIPS, FEDWIRE, SWIFT, etc.) and retail systems (ATMs, POS, preauthorized debits, direct deposits of recurring payments, etc.)
SERVICES PROVIDED BY YOUR IN-HOUSE DATA CENTER(S) FOR OTHERS
Please provide a list of applications processed for others and the mode of processing: batch, on-line, real time.
Please provide a list of financial institutions serviced including name of institution, address, and the applications processed. Please indicate whether the institution(s) are National Banks, State Member Banks or other types of financial institutions.
For data processing performed for other customers, please indicate the number of non-financial customers for each application.
Should you have any questions or require guidance concerning this matter, please contact Mr. Terrence C. Miller (Tel. No. 212-618-6603; Fax No. 212-618-6924).
Very truly yours,
Neil D. Levin
Superintendent of Banks