AL 98-6
Subject: Year 2000 Guidance on Customer Awareness
Date: May 19, 1998

TO:  Chief Executive Officers of National Banks and Federal
     Branches and Agencies, Service Providers, Software Vendors,
     Department and Division Heads, and  Examining Personnel

This advisory is to alert you to the recent release of FFIEC
"Guidance on Year 2000 Customer Awareness Programs" (attached). 
This guidance supplements previous FFIEC interagency statements
and describes expectations for a Year 2000 customer awareness
program that should be developed by every national bank.

The OCC expects national banks to provide forthright and honest
responses to questions and concerns raised by their customers. 
The OCC expects each national bank to develop a proactive
customer awareness program by September 30, 1998.  This program
should include appropriate communications channels to effectively
respond to customer inquiries.  The program should also address
how the bank will respond to its customers should unfavorable
events occur, whether internal (e.g., system breakdown) or
external (e.g., adverse media coverage of Year 2000, computer
problems in other segments of the economy, etc.)  As part of each
Year 2000 examination, OCC examiners will review the adequacy of
each bank's customer awareness program.

Because every financial institution is unique, management of each
institution is in the best position to determine how best to
communicate with its customers.  The OCC expects each national
bank's customer awareness program will include appropriate
communication vehicles.  Examples of communications vehicles
which banks should consider include:

     Distributing  informational brochures in monthly or
     quarterly statements;

     Establishing toll-free telephone number(s) to respond to
     inquiries;

     Conducting seminars to discuss the Year 2000 problem and how
     the bank is preparing; and

     Developing Internet sites.

As part of its customer awareness program, each bank should
ensure that customer contact personnel are trained to respond to
customer inquiries by referring customers to explanatory
materials or expert staff.   The FFIEC is preparing a customer
brochure that can be used as part of a bank's Year 2000 customer
awareness program.  This brochure, which will be available in
June 1998, will explain what banks and banking regulators are
doing to address the Year 2000 problem. 

The OCC reminds all national banks that they are prohibited from
publicly disclosing the contents of federal regulatory agency
examination reports or reviews of any bank or service provider or
software vendor, including Year 2000 ratings.  Furthermore, banks
must avoid any implication that their Year 2000 readiness has
been reviewed, approved, or certified by any regulatory agency.

For further information on Year 2000 issues, contact the Year
2000 Supervision Policy Division at (202)874-2340.




                                              
Emory W. Rushton
Senior Deputy Comptroller
Bank Supervision Policy


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