The American Institute of Certified Public Accountants has issued two draft papers that address – in a generally positive way -- issues related to the implementation of the Current Expected Credit Loss standard, which will require banks to record credit losses at origination based on the life-of-loan loss expectations.

Implementation deadlines may seem distant but they’re looming now.

Responding to a concern initially raised by the American Bankers Association in a discussion paper, the Financial Accounting Standards board agreed today to propose changing the effective date of the Current Expected Credit Loss accounting standard for “non-public business entities” to fiscal years beginning after Dec. 15, 2021.

As banks prepare to implement the Current Expected Credit Loss standard, ABA on Friday called on financial regulators to provide for a complete and ongoing adjustment of common equity tier 1 capital for the effects of CECL until a new capital regime can be finalized.

A new joint proposal from the Federal Reserve, FDIC and the OCC will give banks the option to phase in the regulatory capital effects of the Current Expected Credit Loss standard, the Federal Reserve announced today.

The Basel Committee today issued a proposed technical amendment to bank disclosure requirements in light of new expected credit loss accounting models being implemented worldwide. 

Community banks may need to consider implementing the Financial Accounting Standards Board’s Current Expected Credit Loss accounting standard earlier than initially expected, ABA concluded in several new discussion papers.

Representatives from 15 ABA member banks of all sizes met with the Federal Reserve, OCC, and FDIC yesterday to discuss concerns related to the impact of the Financial Accounting Standards Board’s Current Expected Credit Loss accounting standard.

The Federal Reserve, FDIC and OCC are finalizing a halt in the phase-in of certain Basel III capital rules for banks not using the Basel advanced approaches.

A group of House lawmakers yesterday wrote to the heads of the Securities and Exchange Commission and the Financial Accounting Standards board urging them to more closely examine the effects of FASB’s Current Expected Credit Loss Standard on credit availability and calling for a delay to CECL’s effective date until such a study can be carried out.