Banking Was Prepared

We can take comfort in light of the horrible disaster that occurred on September 11th in the fact there was no panic or hint of shaken faith about the banking industry on the part of the American people. Even in the days that followed there was no doubt of the security of our depositors' funds and the ability of the banking industry to maintain almost normal business activity.

In announcements on Wednesday morning, the day after the terrorist attacks, the Check Exchange revealed that all settlements were completed on the 11th. Clearing House banks went back to the Federal Reserve sites to do physical exchanges - the way we used to do. CHIPS (Clearing House Interbank Payments System) processed all payment activity in a normal manner. They said banks that were directly affected by the disaster used their disaster contingency centers, and all settlements were completed.

Actual check exchanges were slowed down, of course, due to the loss of capability of air travel. Again, we managed to deal with that on a deposit by deposit basis.

HOTLINE advisor Boris Melnikoff, Corporate Director of Security at Wachovia in Georgia, discussing the banking industry's reaction to the tragedy said, "Only due to the banking industry's foresight and disaster planning were we able to continue business as usual. We have been prepared to respond to disasters and deal with them successfully with minimum business disruption. We've taken advantage of available technology and have imaged much of our records and stored them at back-up sites. So we can rely on our redundant systems to preclude the destruction of any records - and so keep our depositors totally secure.

"Achieving and maintaining such a secure back-up environment was not quickly or easily executed, and the banking industry's leaders, disaster recovery and security officers can take pride in what they have accomplished."

Copyright © 2001 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 11, No. 9, 9/01