District Circular Letters
 District
Circular Letters Index
December 28, 1998
REGULATION CC: SOFTWARE CHANGES RELATING TO MERGERS--
EXTENSION OF COMMENT PERIOD
To Member and Nonmember Banks,
and Others Concerned
in the Twelfth Federal Reserve District
Regulation CC: Proposed Temporary Liberalization of Merger-Transition
Provisions (Docket
R-1027)
The Federal Reserve Board is requesting comment on proposed amendments
to Regulation CC to temporarily extend one-year merger transition provisions
to facilitate banks' efforts for Year 2000 readiness.
Comment, originally requested by January 4, 1999 (see our letter of December
11, 1998), has been extended to February 1, 1999.
The proposal would provide additional time for banks that merge between
July 1998 and May 1999 to implement software changes. The proposal would
allow these banks to continue to be treated as separate banks until June
1, 2000. The normal one-year transition period would resume for mergers
effected after May of 1999.
The proposal recognizes that banks are dedicating a large amount of their
automation resources to renovating and testing software and replacing
noncompliant systems to address Year 2000 computer problems. During this
period banks may be challenged to make and test other programming changes,
including those required to comply with merger transition provisions of
Regulation CC.
The Board is seeking comment on the need for the proposal and whether
the proposed liberalization of the regulation's merger transition provisions
are adequate to avoid contention for programming and testing resources
necessary to manage banks' readiness efforts for Year 2000.
Copies
Copies of the Board's notice (Docket
R-1027) are available from our Corporate Services Department.
To request copies to be sent via mail, please call (415) 974-2748.
To request copies to be sent via fax, please call (415) 974-3333,
and specify document number 4242.
Additional Information
For additional information regarding Regulation CC, please contact our
Law Department, at (415) 974-2256.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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