MEDIA RELEASE No: 2000-01 Date: 1 January 2000 Embargo: For Immediate Release

THE YEAR 2000

The following statement was made by the Governor of the Reserve Bank of Australia, Ian Macfarlane, at 2:00 am Australian Eastern Summer Time:

'I am pleased to say that, at this early stage, all indications are that the Australian financial system has made a smooth transition to the Year 2000.

Over 50 banks, building societies and credit unions have already reported in to us; together, these institutions account for over 90 per cent of ATM, EFTPOS and credit card transactions in Australia. They report no problems to this point. In particular:

• cash is readily available for those who need it - ATMs are working;
• financial records are being accurately maintained; and
• EFTPOS and credit card systems are operating as normal.

Over the next few days, staff in the RBA/APRA Communications Centre will remain in close contact with financial institutions and major payments service providers. The first batch of the regular status reports from these institutions is currently being processed. The next round of reports is due at 5:30 am, and further reports will be received over the course of today and following days. The Reserve Bank and APRA will be providing regular updates to the public, via Media Releases and their websites, as new information comes to hand.

Ahead of resuming their full range of business activities on Tuesday, financial institutions have begun to test their systems in the "live" Year 2000 environment. This testing will be monitored by the RBA/APRA Communications Centre and is the final stage in the transition to the Year 2000.

Finally, may I say how pleased I have been with the way that Australia's financial institutions and their customers have approached the Year 2000 issue. Financial institutions have prepared thoroughly for the date change and have gone to considerable effort to reassure their customers about the safety of their deposits and the integrity of their records. For their part, customers have taken a responsible and level-headed approach in the lead up to the Year 2000. I am confident that they will continue to do so in the days ahead.

I wish you all a happy New Year'.

Updated information will appear through the course of the day on the Reserve Bank and APRA websites.

Enquiries:

Manager, Information Office
Reserve Bank of Australia
SYDNEY
Telephone: (02) 9551 9720