During a House Financial Services subcommittee hearing today, lawmakers on both sides of the aisle expressed serious concerns about the economic effects of the Financial Accounting Standards Board’s current expected credit loss standard on the cost and availability of credit for consumers.
With the nation’s largest banks now beginning to implement the current expected credit loss standard, the American Bankers Association continues to call for a quantitative impact study that would analyze the full effect of the standard on both bank capital and the economy.
While generally welcoming the Securities and Exchange Commission’s proposed updates to “Guide 3,” ABA urged the SEC to allow more time before adding disclosures specific to the Current Expected Credit Loss model.
In a 71 to 23 vote this afternoon, the Senate approved a spending package for the current fiscal year, funding the government through Sept. 30, 2020.
Regulators’ proposed changes to interagency guidance on credit risk review systems are “either too broad or overly prescriptive,” and could impose a significant cost burden on smaller institutions, the American Bankers Association warned in a comment letter today.
The House today approved a spending package for the current fiscal year, funding the government through Sept. 30, 2020. The Senate is expected to vote on the spending bills later this week.
The American Bankers Association submitted comments to the American Institute of Certified Public Accountants today on a proposal addressing how auditors will approach accounting estimates and related disclosures after the current expected credit loss standard is implemented.
A bipartisan group of 28 House members last week called on the Financial Stability Oversight Council to require that the Office of Financial Research study potential financial stability effects of the current expected credit loss model for loan loss accounting, which goes into effect for large reporting companies as soon as January.
As banks prepare to implement the current expected credit loss accounting standard, the financial regulatory agencies have issued a proposed interagency policy statement on allowances for credit losses and proposed interagency guidance on credit risk review systems.
The Financial Accounting Standards Board today voted to extend the implementation of the current expected credit loss standard for certain financial institutions, as proposed earlier this year.