US regulators urge banks to plan for bird flu

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US regulators urge banks to plan for bird flu

US regulators are urging financial institutions across the country to

devise contingency plans for dealing with a possible widespread

outbreak of avian flu.

The Federal Reserve System, the Office of the Comptroller of the

Currency, the Federal Deposit Insurance Corporation and the Office of

Thrift Supervision have issued a joint advisory notice calling on

banks to consider the impact of a possible bird flu pandemic on

business.

" A pandemic event is a potential threat to any financial institution

regardless of size and location, " the advisory statement says.

The document states that financial firms should have business

contigency plans to deal with possible high levels of absenteeism in

the event of an outbreak. Measures to control possible infection in

the workplace should also be considered, including options for

working at home for staff who are ill.

In January the US Financial Services Sector Coordinating Council

(FSSCC) said a possible avian influenza pandemic poses a " unique

threat " to the industry and called on banks to re-examine current

contingency plans which may not be adequate for dealing with bird flu.

Some banks in Europe have already been working plans to deal with a

possible avian flu pandemic.

HSBC has estimated that a widespread bird flu pandemic could affect

up to 50% of its global staff. The bank has been preparing for staff

that have to care for family members to work from home using video

link and teleconference facilities and is also planning for office

cleaning once an hour in an effort to limit infection.

HSBC's 50% figure is higher than official forecasts, including

estimates from the World Health Organisation (WHO) which is expected

to advise companies to plan for 25% absence.

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