Agencies issue policy statement on applying CECL

Federal regulators approved a policy statement designed to promote consistency in the interpretation and application of the Financial Accounting Standards Board's Current Expected Credit Losses methodology.

The interagency policy statement describes the measurement of expected credit losses using the CECL methodology and updates concepts and practices detailed in existing supervisory guidance that remain applicable.

The agencies also finalized interagency guidance on credit risk review systems. The guidance presents principles for establishing a system of independent, ongoing credit risk review in accordance with safety and soundness standards.