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Year 2000 advice

Document date:  Wed 24 Mar 1999
Published:  Wed 24 Mar 1999 00:00:00
Document No:  146776
Document part:  A
Market Flag:  N
Classification: 

HOMEX - Melbourne                                                     

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This is a statement of ANZ's position on the Year 2000 issue as at
the end of February 1999, released in March 1999 to the Australian
Stock Exchange, the New Zealand Stock Exchange and the New York Stock
Exchange. 

Overview

Australia and New Zealand Banking Group Limited and each of its
subsidiary companies ('ANZ') is aware of the risks associated with
Year 2000. ANZ's Year 2000 preparations are well advanced and
progressing on target. ANZ is also implementing comprehensive plans
to mitigate risks.

* A central Group 2000 Project manages implementation of the plans
for ANZ's operations in 43 countries and across all its wholly owned
subsidiaries.

* The project reports monthly to the Board of Directors, and to an
executive Year 2000 Steering Committee. 

* Repair and individual testing of ANZ's own applications and core
technology platforms was completed ahead of the scheduled date of 31
December 1998. 

* The review of critical systems provided by external suppliers, and
the sourcing of replacements where necessary, has been completed.
Testing of critical third-party systems is almost entirely completed.

* Remediation and testing have been completed for all ANZ's critical
buildings world-wide, with one minor repair still to be completed and
this is in progress. Non-critical buildings are on schedule for
completion by 30 June 1999.

* ANZ is working with other banks and banking regulators (such as the
Australian Prudential Regulation Authority and the Reserve Bank of
Australia) to address Year 2000 issues and to test major payment
streams thoroughly.

* ANZ worked hard to prepare its own systems by the end of 1998, and
is confident that they should operate normally. Additional testing in
1999 should confirm this. ANZ's daily processes ensure that all
customer account details are always safely recorded and stored. ANZ
is confident that the deposit, in its customers' bank accounts are
safe from loss due to Year 2000 problems.


Changes since previous statement

This statement updates ANZ's previous Year 2000 statement (as at the
end of May 1998) to the Australian Stock Exchange.

There has been no material change to ANZ's assessment of its overall
potential exposure to the Year 2000 problem.

Whilst ANZ's Year 2000 plans are modified where necessary to deal with
emerging issues, there have been no material deviations to the
planned activities as described in the previous statement, except for
the establishment of Year 2000 Compliance Review Boards (described on
page 4).

Internal systems

Repair and individual testing of ANZ's own applications and core
technology platforms was completed ahead of the scheduled date of 31
December 1998.

Implementation of repaired applications has largely been completed
with the following major applications scheduled as follows;
                                   
1.  ANZ's new Commercial Banking System (CBS) for international sites 
has replaced systems in 13 countries and implementation is in progress
in India. In other countries, existing core systems were repaired and
tested by the end of December 1998 or are scheduled to be replaced by
CBS.
                                   
2.  The implementation of voucher sorting equipment (hardware and
software) has commenced. The rollout program is expected to be
complete by 30 June 1999.
                                   
3.  The accounts of ANZ's Town & Country Bank customers are expected 
to be migrated from Town & Country Bank's existing systems to ANZ's 
main system (Hogan for Retail) in May 1999. As a contingency, existing
Town & Country Bank software applications have also been successfully
repaired and tested for Year 2000.
                                   
ANZ's testing program comprises three phases of testing, with the
first two phases already completed by the end of December 1998. The
third phase of testing, incorporating testing with other financial
institutions and regulators, has already commenced and is expected to
be complete by the end of June 1999. A testing program with selected
customers has also commenced and will continue throughout 1999.

External suppliers and partners

ANZ has reviewed the systems it uses that are provided by external
suppliers. Critical compliant products have been obtained or ordered
and almost all have been tested. Testing for non-critical products is
suppliers, including those that supply critical services (for
example, cash delivery). 

ANZ is investigating key infrastructure items used throughout the
organisation, such as telecommunications and power, and is developing
strategies to address risks which may arise should problems with such
items occur. ANZ is working with industry groups, both locally and
overseas, to address Year 2000 issues with infrastructure providers.


Recent acquisition

On 1 October 1998, ANZ acquired the residential mortgage business of
the Primary Industry Bank of Australia (PIBA) from Rabobank
(Australia). Rabobank (Australia) provides computing services for the
acquired business to ANZ under a Facilities Management Agreement,
pending transfer of the system to the ANZ environment, which is
expected to occur soon.
                                       
          
PIBA has undertaken repair and individual testing of PIBA's own
applications. The tests have been completed in accordance with ANZ
standards and Rabobank (Australia) is finalising requisite
documentation for ANZ.

EFTPOS devices and ATMs

ANZ is performing Year 2000 tests on its EFTPOS devices, Fast Track
and Nightlink (credit card only) devices and ATMs. Test results have
shown that most devices are capable of processing Year 2000 dates
correctly within their test environments. Where devices have been
assessed and found not to conform to ANZ's Year 2000 requirements,
ANZ has begun contacting merchants and/or has commenced an upgrade
program on those devices. This process will be substantially complete
by the end of June 1999.

Customers

ANZ is continuing to communicate with its customers to help raise
awareness of the Year 2000 issue. ANZ also recognises the potential

Premises

ANZ currently occupies both leased and owned premises in Australia
and overseas. A global inventory of the building infrastructure
systems has been completed, and Year 2000 compliance information has
been collected for all buildings. Remediation and testing have been
completed for all ANZ's critical buildings world-wide, with the
exception of one product: a security panel in one building. This is
being repaired and will be completed by 30 April 1999,

Non-critical buildings are on schedule for completion by 30 June
1999.

MORE TO FOLLOW




                
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