13 August 1999

The Chief Executive
All authorized institutions

Dear Sir / Madam,

Formal Statement by Chief Executive of Year 2000 Progress

According to the monthly formal statements on the Year 2000 ("Y2K") compliance progress, we are pleased to note that the banking industry is making good progress in addressing the Year 2000 problem. As at end-June 1999, all AIs had reported to be Year 2000 compliant in respect of their critical systems.

Since we are drawing near to the millennium transition, we will need to have more timely information on the Y2K compliance level of authorised institutions. I would therefore appreciate it if you could duly complete the formal statement with respect to your institution's progress in the Y2K project and submit to Mr. Vincent Lee, Senior Manager (Banking Development) before the 10^th of the each month starting from the August return. We believe that this should not pose major problems to institutions given their advanced state of preparedness. The last formal statement should be submitted to the HKMA before 10 December 1999 reporting the end-November 1999 position of your institution. Chief Executives are reminded that they should satisfy themselves that the information given in the statement is, to the best of their knowledge and belief, correct.

A formal statement with explanatory notes is attached herewith for your reference. If you have any questions on the statement, please contact Mr. Vincent Lee at 2878 1384.

Encl.