The end of the Y2K bug

inSight

06 Jan 2000

The end of the Y2K bug

The smooth entry into the new millennium was made possible by many months of painstaking preparations and by the high level of confidence in Hong Kong's monetary and financial systems. Both specialists and the general public played an important role in ensuring a successful rollover.

The monetary and financial systems of Hong Kong have successfully rolled over to the new millennium. In this first Viewpoint article of the new millennium, I wish to pay tribute to two groups of people for this success. The first group is the community at large who have expressed so much confidence in, and given support to, those of us responsible for tackling Y2K issues in the monetary and financial sectors. There were only a few longer than usual queues at banks and ATM machines in the last few days of the year. The amount of banknotes issued also went up by only slightly more than that usually expected at this festive time of the year. But all this was understandable and was well within the planned capacity of the banking system.

The second group includes all those who have worked hard behind the scenes during the last year or so to make sure that the many computer systems upon which our monetary and financial sectors have become so dependent are Y2K compliant. For each of us on the front line, busy assuring everybody that we are among the best prepared and easing the way for a smooth rollover to the new millennium, there are thousands of others who have put in a lot of effort to make this possible. There are the computer experts who fought hard to catch and eliminate the Y2K bug, going through the myriad complicated computer systems that are now in use in finance, looking exhaustively into places that we laymen cannot possibly imagine. There are those at the management level who were responsible for the co-ordination of efforts across markets and institutions, encouraging a collegial spirit to tackle a potential problem that was likely to be highly contagious and of systemic significance. There are those responsible for contingency planning at all levels of activity, ensuring readiness in handling disruptive events of all types, in the unlikely event that the bug did strike. Then there are those who actually managed the rollover at our Event Management Centre, working shifts around the clock to ensure that the necessary wellness checks took place immediately after the arrival of the new millennium, while others like myself enjoyed the millennium celebrations. They are the true heroes and heroines. But unfortunately they do not really have a face that we can identify for awarding the accolade. We should nevertheless thank them for a job well done.

Pessimists may remind us that the danger is not over yet, and that latent problems might erupt at any time in the next few months. But the smooth experience in the financial markets and at retail banks over the last few days gives us every reason for confidence that the Y2K problem is behind us. We will, nevertheless, continue to monitor events and reactivate our Event Management Centre at the critical dates and whenever circumstances require.

With such a smooth rollover in most parts of the world, questions are beginning to arise about whether the world has taken the Y2K bug too seriously. Was all the money and effort spent worth it? And would the situation have been very much different had we taken no, or less, action? The answer to both questions is most certainly yes. Even with a generally smooth rollover, there have been enough Y2K problems - most of them mercifully small and remote from Hong Kong - to remind us of the consequences of not taking the issue seriously. Our monetary and financial systems are far too essential a part of Hong Kong's way of life for things to be left to chance. Much of the money spent on tackling the Y2K problem will have practical long-term benefits through upgrading equipment and systems. And the experience of working together to eradicate the Y2K bug has been a rich and valuable exercise in teamwork for all involved.

Joseph Yam
6 January 2000

More Year-2000-related information about Hong Kong's banking sector can be found here.

Answers to the Christmas Quiz on Central Bank Governors

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Last revision date : 06 January 2000