top of page

Banks prepared for Y2K

I first started at the Bemidji (Minn.) Pioneer as an intern in the summer of 1996. That would begin six years as a news reporter, sports reporter and copy editor for a small, six-day-per-week daily newspaper in northern Minnesota. I wrote a large range of stories from multiple beats, to features to sports, my favorite being the coverage of the Red Lake Reservation High School basketball team named the Warriors. Here is a collection of my stories from my time at the Pioneer.

Dec. 31, 1999


By Devlyn Brooks


Area bank officials say they have been prepared for the possible Y2K bug for months, and that Bemidji customers have demonstrated they are confident the banking industry will safely ride out the switch to the year 2000.


Four bank administrators said Wednesday there has not been a run on their cash flow yet because they believe people are confident in leaving their money in the bank this New Year's Eve.


"We have not had a lot of concerns voiced to us," Security State Bank USA Senior Operations Officer Lois Anderson said. "People need to remember that the (Federal Deposit Insurance Company) insures each customer to $100,000. The safest place for your money is still in the bank."


In fact, according to Norwest President Dave Landgerbe, the federal government has rated the financial services industry as being among the best prepared for a possible Y2K surprise.


All banks were mandated to have their computers checked and fixed by June 30, Landgerbe said. And since then, most banks have double checked -- and even triple checked -- all mission critical systems.


"Norwest is ready for Y2K. Many aspects of our operations already use year 2000 dates and we continue computer testing for the date change," he said. "We have strengthened and tested longstanding backup plans, and we'll have extra staff working before, during and after the date change to respond to any problems."


Most banks in town have responded the same way to the possible Y2K phenomena. they started discussing the issue years ago, have tested their systems, fixed them if necessary and have produced hard copy backups of documents.


In addition, all of the banks have contingency plans in place should a computer glitch develop.


Here is a sample of what some Bemidji banks have done to prepare for Y2K:


Northwest Community Bank


Roger Hare, vice president of Northwest Community Bank, said his bank started by buying new computers in 1997 and adding even more patchwork to them later.


They've since tested their mainframe into the year 2000, and ran some reports on 13 dates in the future, without a glitch.


Hare said he would be at the bank monitoring the system as today turns into Saturday, and that staff would check the computers again Saturday.


Northwest Community Bank even has a generator ready to fir up should electricity fail.


"We're going to have electricity one way or another," Hare said. "(But) we feel that our computers will be running after the first of the year and in the future."


Security Bank USA


Anderson said her bank's Y2K committee started work about two years ago, first identifying the bank's critical systems. they were tested, fixed and certified compliant by the FDIC and the state.


She added the bank has even tested systems that have links to other banks' computers, and they all seemed ready.


They have printed hard copies of all documents, and they will have someone onsite monitoring the computers tonight. If something fails, they have a contingency plan established, which was required by the federal government.


"We're actually looking forward to the day coming and going so we can stop planning for it," she said while laughing.


First National Bank-Bemidji


Nancy Koenck, bank operations manager, said they have discussed the situation for four years.


First, they did an inventory of all of their computer systems, and then determined which were mission critical. They then bought Y2K compliant upgrades if necessary, tested all of their systems and updated their crisis plan to include Y2K.


They've also made hard copy documents of all information.


"We're operating business as normal," Koenck said.


First National Bank will have people manning its computer center tonight, she added, but it always does.


All banks will have normal business hours today, are closed Saturday and open at regular times Monday.


Comments


bottom of page