OHIO DIVISION OF FINANCIAL INSTITUTIONS

The Ohio Department of Commerce’s Division of Financial Institutions suggests a common sense approach to the Y2K issue. Y2K describes the potential year-end computer problems that might be experienced on or around January 1, 2000. According to Superintendent of Financial Institutions F. Scott O’Donnell, "There is simply no reason to overreact and drain deposit accounts in fear that funds will be lost forever. Your money is safer in an insured deposit account than hidden away in your home."

Ohio financial institution customers should be aware that:

• All depository institutions have been examined by state and/or federal regulators to assess Y2K preparedness. Thus, there is no need to close accounts in banks, credit unions, savings and loans or savings banks.
• Deposit insurance has been in place for decades. Deposit insurance will not be affected by any Y2K related event.
• For many years, state and federal regulators have required banks, credit unions, savings and loans, and savings banks to back up computer files daily. Thus, customer account information can be retrieved if a computer fails for any reason.
• Banks, credit unions, savings and loans, savings banks, and their regulators will not contact customers by telephone to arrange transfers of the customer’s funds into special Y2K protected accounts. This is a scam, pure and simple.
• Customers should ask their bank, credit union, savings and loan, or savings bank what they are doing to become Y2K compliant. Regulators require each depository institution to have a public awareness program.

"It is a personal decision whether to withdraw some money from your financial institution as the century date change approaches. Before making this decision, I would encourage Ohioans to consider the security and safety issues associated with having large amounts of cash on your person or in your home," Superintendent O’Donnell said. "Money withdrawn from a financial institution is not insured by the federal government."

Superintendent O’Donnell today suggested that Ohio citizens inform themselves about Y2K. While there is an abundance of good information available about the Y2K issue, he said misleading information is being circulated by opportunists.

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The Ohio Department of Commerce's Division of Financial Institutions regulates Ohio's state-chartered financial institutions. In addition to financial institutions, Commerce also regulates securities, industrial compliance, fire codes, unclaimed funds, liquor, and real estate, among other industries. The department's internet address is www.com.state.oh.us

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