Agencies Propose Policy Statement on Credit Losses

Oct 17, 2019
Federal financial regulators requested comment on a proposed interagency policy statement on Financial Accounting Standards Board’s Current Expected Credit Loss standard.

The proposed policy statement describes the measurement of expected credit losses using the CECL methodology and updates concepts and practices in existing supervisory guidance.

ICBA last month expressed support for FASB’s proposal to grant additional time for most community banks to implement CECL standards.

ICBA has worked with FASB officials since 2011 to achieve several substantive improvements to CECL and will continue advocating a more flexible CECL environment for community banks, as noted in an interactive timeline on ICBA's website.