Y2K Keeping Banks Open on Jan. 1 By KIM CURTIS AP Business Writer

SAN FRANCISCO (AP) - A number of smaller regional banks are hoping to allay customers' fears about Y2K problems by opening on Jan 1.

``I think it's a great idea to stay open because a lot of people are concerned,'' said Derick Wilson, a customer of California Federal Bank, one of the nation's largest savings and loans.

The coming of the year 2000 has prompted widespread concern among people who fear computers will think it is 1900 and malfunction. However, even professional doomsayers aren't worried that cash machines will malfunction, bank accounts will get lost or loan applications will disappear.

``It's the most-checked Y2K industry out there,'' said James Wilson, publisher of Y2K News Magazine. ``If every other sector of the economy did what the banks did, there wouldn't been any Y2K problems.''

Federal Reserve Chairman Alan Greenspan has said that banks will be the safest place for people to keep their cash at the end of the year. And Federal Deposit Insurance Corp. chairman Donna Tanoue said America's banks are ready for Y2K, with contingency plans that will allow them to take deposits and dispense cash even if all the computers go down.

``I'm personally not really worried about it,'' said Derick Wilson, a San Francisco interior designer. ``I really feel the people in control of the banking industry are some of the wealthiest people in the country. They're not going to allow a Y2K glitch.''

Even so, he plans to withdraw an extra $1,000 ``because you just don't know.''

Because of such fears, the Fed plans to make special loans to banks, savings and loans and credit unions that might need emergency money. The Fed also ordered an additional $50 billion in currency put into circulation in case people make a run on banks and ATMs late in the year.

Some national institutions such as Citibank and Chase Manhattan Bank are taking a business-as-usual approach.

``On a Saturday or a Sunday people are not looking to walk into their local branch,'' said Chase Manhattan spokeswoman Lisa Selkin Lupo. ``They want to get money out of their ATMs.''

The nation's second-largest bank said it will be ready to quickly refill its ATMs if necessary over the holiday weekend.

While many large, nationwide banks won't be open, smaller banks such as Summit Bank in the Northeast, Community First Bankshares in the Midwest and CalFed in California and Nevada have decided to keep some branches open Jan. 1.

``We've worked long and hard on getting our systems up to speed and Y2K-ready, and we don't expect any problems,'' said Scott Kisting, executive vice president CalFed. ``However, the Y2K issue has been such a hot topic in the press we can't ignore the fact that may people may have some concerns.''  ; TS:SBGA;) 

http://dailynews.yahoo.com/h/ap/19991214/tc/new_year_s_banking_2.html

-- LOON (blooney10@aol.com), December 14, 1999