The OCC encouraged ICBA to take community bank concerns over the PPP's complex accounting arrangement to the Financial Accounting Standards Board.
ICBA recently asked federal banking regulators to allow community banks to recognize PPP fees as income upon origination. ICBA said recognizing the income on bank balance sheets immediately, rather than over the life of the loan, reflects the unique characteristics of the PPP.
The OCC said that while it is sympathetic to community bank concerns, it is not authorized to make the needed accounting changes. It encouraged community banks to discuss their concerns about PPP fees with their external auditor and to work with their OCC examination team.