For your reference, I am enclosing an interagency statement recently released by the Federal Financial Institutions Examination Council (FFIEC) which discusses contingency planning. Guidelines for contingency planning are included and the board of directors of each federally insured credit union should ensure that an appropriate contingency plan is in place and has been adequately tested and monitored.
This interagency statement revises the one issued to all credit unions in Letter to Credit Unions No. 109, dated September 1, 1989. In that Letter, three statements were issued, however, only the one entitled "Interagency Policy on Contingency Planning for Financial Institutions" is revised.
Contingency planning is crucial to the operations of each credit union. Each credit union should have a tested plan in place to ensure the smooth operation of the credit union in the event of a disruption of service for whatever cause. Examiners will continue to review and evaluate these plans at future examinations.
Norman E. D'Amours