The American Bankers Association yesterday said it supports proposed revisions to the Call Report that ease a compliance burden on banks resulting from a prior change in accounting standards.
The Federal Reserve, FDIC, and Office of the Comptroller of the Currency announced proposed revisions to the Call Report to address a 2022 change in accounting that eliminated troubled debt restructurings and also added a requirement to report current-period activity for loan modifications made to borrowers experiencing financial difficulty. This revised proposal aligns the changes to the Call Report with U.S. generally accepted accounting principles, or GAAP.
The ABA had previously submitted a comment letter strongly objecting to the 2023 proposal to revise the call report for the 2022 accounting change in a manner that did not align with U.S. GAAP. The association recommended an approach to align with U.S. GAAP and the agencies incorporated that feedback into the current proposal.
In its letter yesterday, ABA said it supports the agencies’ efforts to modernize and streamline regulatory reporting and noted that the proposed revisions demonstrate a strong commitment to U.S. generally accepted accounting principles. “We look forward to continued collaboration and thank the agencies for their leadership and dedication to effective supervision and sound banking practices,” the association said.
