Opening the Post-COVID Bank Books
Banks moved heaven and earth to help clients through COVID-19. While examiners are stepping cautiously in exams, bankers must prepare for more probing questions.
Browsing: Loan loss accounting
COVID-19: A Positive Disruptor to Expected Credit Loss Models
The current murky picture delivered by traditional data has forced an increased focus on new methods that better capture credit risk.
Treasury Inconclusive on CECL Effects, Calls for Further Study
While noting emerging indicators that credit availability declined and lending standards tightened in early 2020, the Treasury Department yesterday said it is difficult to find a link between these trends and the current expected credit loss framework due to the coronavirus pandemic.
Agencies Finalize Three Rules Issued as Part of Pandemic Response
The federal banking agencies today finalized several rules originally issued as interim final rules during the spring weeks of the emergency coronavirus response.
ABA Recommends Focus for Congressionally Mandated CECL Study
As the deadline for an ABA-advocated, congressionally mandated Treasury Department study of the current expected credit loss standard looms, ABA recently wrote to Treasury to provide its view on which aspects of CECL the study must address.
Bipartisan Group of Senators Call for FSOC Study on CECL
A bipartisan group of senators yesterday urged Treasury Secretary Steven Mnuchin to direct the Financial Stability Oversight Council to conduct a study on the current expected credit loss accounting standard’s effect on lending and the economy.
Agencies Grapple with Particulars of CECL Delay
Three years after it was issued—and amid numerous congressional hearings, a mandate for the Treasury Department to study its economic impacts, and recent regulator calls for reconsideration—the CECL accounting standard became effective for most large banks on January 1, 2020.
First Quarter COVID-19 Credit Loss Estimates: Where No Man Has Gone Before
Whether institutions are using CECL or incurred loss methodology, estimating credit losses in today’s pandemic-stressed economic environment is challenging to say the least.
ABA Warns of Unintended Consequences of Proposed CECL Capital Phase-In Delay
In a comment letter to the financial regulatory agencies today, ABA warned of potential unintended consequences that could arise as a result of a recent interim final rule delaying the three-year phase-in of the regulatory capital effects of the CECL standard for two years.
Rep. Kustoff Flags Technical Complication with SEC Interpretation of CECL Delay
In a letter to SEC Chairman Jay Clayton this week, Rep. David Kustoff (R-Tenn.) urged the agency to rethink its approach to implementing the temporary delay of the current expected credit loss standard that was included in the CARES Act.