As the Financial Stability Oversight Council meets today to discuss, among other topics, the Financial Accounting Standards Board’s Current Expected Credit Loss model for loan loss accounting, 28 Republican House members urged a delay in CECL’s implementation date and a comprehensive study of its effects on the banking industry and access to credit.
Led by House Financial Services Committee member David Kustoff (R-Tenn.), the signers called on Treasury Secretary Steven Mnuchin as chairman of FSOC to “closely evaluate the negative consequences this standard will place on the banking industry, small businesses, and the consumer.” They added that uncertainty about CECL’s effects on bank capital “may cause many community banks to reduce the number of financial products offered to consumers.”
The American Bankers Association and four other trade groups this morning called for a quantitative impact study of CECL and a delay in implementing the standard until the study can be conducted. Meanwhile, the Financial Accounting Standards Board announced that it will hold a public roundtable on CECL implementation issues in January.
