The task of preparing European banks for the introduction of a single currency, the euro, next January, is distracting many financial institutions from preparations for the year 2000 computer problem, according to US officials.

Ms Bonnie Cohen, under secretary of state for management, said Britain, Australia, and Canada were working aggressively to find solutions, but other European countries were in "the mid-range of the effort".

This was because they were dealing simultaneously with the euro.