§ Mr. David AtkinsonTo ask the Chancellor of the Exchequer what steps are being taken(a) nationally and (b) internationally to avert a liquidity crisis in the event of the millennium non-compliance of computer systems. [76058]
§ Mrs. RocheThe best way to proceed is for financial institutions to achieve a high degree of Year 2000 compliance. The primary responsibility for achieving that lies with the industry. The Financial Services Authority regards this as a major supervisor priority and has made it clear that firms which fail to implement appropriate measures face regulatory intervention. The Bank of England has been making strenuous efforts to ensure that payment and settlement systems are well prepared. The UK financial services sector is generally regarded as a leader in working towards Year 2000 preparedness.
Internationally, there are a number of groups working on increasing awareness and promoting preparedness, including the Joint Year 2000 Council of the international regulatory organisations, on which the FSA is represented.