ICBA-supported legislation requiring regulators to study the impact of the Financial Accounting Standards Board's Current Expected Credit Loss standard and delay its implementation by one year was introduced in the House.
Introduced by Rep. Vicente Gonzalez (D-Texas), the measure is a House companion to Senate legislation recently introduced by Sen. Thom Tillis (R-N.C.). The bills require the study to assess CECL's impact on consumer and small-business credit availability, smaller institutions, regulatory capital during an economic recession, systemic risk, and other parameters. The report would also include recommendations for changes to CECL to eliminate or mitigate any negative effects identified in the report.
In a recent letter to Tillis in support of his bill, ICBA noted that it has worked with FASB officials since 2011 to achieve several substantive improvements to CECL. ICBA will continue to advocate for community banks and press for a more flexible CECL environment.
A new interactive timeline on ICBA's website details the years-long initiative to make CECL more workable and scalable for community banks.
Read ICBA Letters
View ICBA's Timeline