In light of the sudden and significant economic changes wrought by the coronavirus pandemic and public health response, FDIC Chairman Jelena McWilliams today asked the Financial Accounting Standards Board to allow banks that have begun implementing Current Expected Credit Loss methodology to postpone it, as well as to impose a CECL moratorium for banks not yet required to implement it.
Browsing: Loan loss accounting
As banks work to implement the current expected credit loss accounting standard, the financial regulatory agencies have finalized an interagency policy statement on allowances for credit losses.
In an op-ed in American Banker today, industry veteran and former Comptroller of the Currency Gene Ludwig warned that the Financial Accounting Standards Board’s current expected credit loss standard “will both undermine the financial industry’s ability to work itself out of a crisis and discourage lending to small businesses.”
Insights from ABA staff expert Josh Stein on the recent FASB oversight hearing.
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.