FSOC Meets Today; CECL on Agenda

The Financial Stability Oversight Council meets today in open and executive sessions. Among other things, the preliminary agenda for the executive session includes the current expected credit loss accounting model.

Ahead of the meeting, the American Bankers Association joined the Bank Policy Institute, the Credit Union National Association, the Consumer Bankers Association and the National Association of Federally Insured Credit Unions in expressing concern about the potentially disruptive effects of CECL and calling for a delay of its implementation until a quantitative impact study can be performed.

“Industry analysts and practitioners believe that CECL could have profound macroeconomic and public policy implications on our nation’s credit system,” the groups said. “We urge policymakers — at a minimum — to pause, study and understand the very real impact CECL could have before deciding whether to move forward.”