Chinese banks, credit cooperatives and post offices will suspend their banking and savings business on December 31, the People's Bank of China (PBOC) announced on December 29.

The move is in conjunction with the New Year's Day arrangement by the State, and will allow sufficient time for the banking businesses to do their final accounting and for the smooth transition of their computer systems to the year 2000, the country 's central bank said.

On Jan.1 and 2, business at various banking outlets will be conducted according to their holiday schedules.

A PBOC official said that the Chinese banking industry is well prepared for the transition to the year 2000.

Since 1996, the industry has focused a lot of human resources and money into the upgrading, rewriting and testing of its computer systems.

To cope with the millennium bug, the industry conducted three nationwide Y2K tests in June, July and September this year.

In the meantime, it formed emergency plans and rehearsed for emergency situations, the official said.

At present, the industry's major banking systems are ready to combat the millennium bug, and clients can be sure of the security of their money at the banks, the official stressed.