Promoting increased awareness

40. Promoting increased awareness of the issue is probably both the simplest and most effective role that bank supervisors can play. Identifying the seriousness of the problem through alerts or other public notices that are carefully balanced and factual has been used successfully in a number of countries. In some cases, these public notices have included helpful guidance on how institutions might effectively address the issue. Direct contact with industry groups or individual institutions can also be used to increase the awareness of senior management.

Establishing targets and benchmarks for the industry

41. Establishing targets and benchmarks for the industry is another way to help assure progress. While different market circumstances may suggest that such targets will differ from country to country, having clear expectations helps institutions develop their own plans and furthers opportunities for external test plans. Several countries have already offered such benchmarks for their institutions.

Industry-wide status assessments

42. Industry-wide status assessments on progress can also be helpful. Bank supervisors are uniquely positioned to know the status of progress in each institution. If issues develop in particular locations or with particular types of entities, judicious public observations on the general level of progress may encourage the reallocation of resources to Year 2000 projects in these sectors.

Proactive supervisory pressures

43. Proactive supervisory pressures directed at specific problems and institutions is the strongest tool available to bank supervisors. While banks are the only ones that can make their applications compliant, supervisors can heighten the level of attention Year 2000 issues are receiving within the bank through a variety of supervisory tools. If, despite all efforts of the supervisors, a bank or group of banks are going to have significant problems, the supervisors should consider what contingency plans are needed to deal with the consequences.