In a letter to the Financial Accounting Standards Board today, ABA President and CEO Rob Nichols called for more clarity on the proposed Current Expected Credit Loss accounting standard, highlighting several key concerns that must be addressed before the standard can take effect.
Browsing: Loan loss accounting
In response to ongoing feedback from bankers and ABA staff related to FASB’s Current Expected Credit Loss impairment accounting standard, FASB Chairman Russ Golden informed ABA’s Rob Nichols that the organization will hold a public roundtable during the first quarter of 2016 that will include community bankers, regulators and auditors to address misconceptions and other concerns about the CECL model.
The Basel Committee on Banking Supervision today issued its guidance on credit risk and expected credit loss accounting, which is intended to set common worldwide regulatory expectations for loan loss accounting, including the Financial Accounting Standards Board’s current expected credit loss model.
With FASB’s recent announcement of a 2019 effective date for their CECL impairment accounting standard, Fintellix Solutions and Ardmore Banking Advisors have released a white paper: “Effective CECL Adoption Timelines Confirmed: Expected Cost of Implementation.”
During a conference call yesterday with more than 3,000 participants, Federal Reserve Board staff indicated that the Financial Accounting Standards Board’s new model for impairment accounting — current expected credit loss, which is expected to be finalized in January and effective no earlier than 2018 — is not a tweak to existing accounting, but rather a fundamental change to bank accounting.
Noting an environment of “high” credit, strategic, compliance and operational risk, the OCC outlined nine priorities for ongoing midsize and community bank supervision in its Semiannual Risk Perspective report released yesterday.
Responding to draft Basel Committee guidance on bank examination procedures for accounting for expected credit losses, ABA cautioned the committee that regulatory expectations must be proportional to the size and sophistication of individual banks.
The Financial Accounting Standards Board’s own Investor Advisory Committee last week became the latest group to express mixed opinions on FASB’s current expected credit loss proposal, which would require expected credit losses over the life of a loan to be recorded at the time of origination. The 10-member IAC includes a member from the Federal