Financial Supervisory Agency August 25, 1998 Announcement of Revised Checklist for the Year 2000 Problem Used in Financial Inspections Given the extent and severity of the potential impact of computer malfunctions during the calendar year 2000, a range of efforts are being implemented through a variety of channels to address the Year 2000 problem, both in Japan and in other countries. This issue was also raised during the Birmingham Summit in May of 1998, during which agreement was reached to take further action in important sectors such as financial services. On December 24, 1997, the Financial Inspection Department of the Ministry of Finance compiled and published its "Checklist for the Year 2000 Problem Used in Financial Inspections." The Inspection Department of the Financial Supervisory Agency has also continued to appraise the status of Year 2000 readiness at financial institutions. As a result of this appraisal of the status of financial inspections, we have now revised the existing checklist to reflect that we have only a little time remaining to address the Year 2000 problem, as well as the fact that we have passed into a new phase in the compliance measures required. The revised checklist starts from the premise that the stage of increasing awareness of the Year 2000 problem among top management, staff and other individuals at financial institutions, and of the formulation of the Year 2000 compliance program should already be completed and shifts emphasis to the implementation of the program, especially renovation and subsequent testing of systems, and preparing contingency plans. Since future inspections will use this checklist to address progress in the steps of the Year 2000 compliance program, we have published the checklist for each financial institution to use in verifying the situation in their own organizations and thereby contribute to further efforts to resolve the Year 2000 problem. For Inquiries Please Contact the Following: Financial Supervisory Agency, Inspection Department: K. Sasaki Tel: 03-3506-6000