The Financial Accounting Standards Board authorized
a proposal to delay until January 2023 the effective date of the Current Expected Credit Loss accounting standards for many community banks.
ICBA said it supports FASB's vote, which authorizes staff to draft a proposed update that would delay CECL implementation for private companies and small public companies. FASB would then consider and formally issue the proposal for a 30-day comment period. It also issued a new document
answering frequently asked questions about the CECL standard.
"ICBA has worked with FASB officials since 2011 to achieve several substantive improvements to CECL and will continue to press for a more flexible CECL environment for the nation's community banks," ICBA President and CEO Rebeca Romero Rainey said.
ICBA continues to support Senate and House legislation that would require regulators to study CECL's impact and delay its effective date by one year. 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 Statement
View ICBA's Timeline