Regulators

FASB CECL Roundtable Recap – from January 28

On January 28, 2019, the FASB hosted a public roundtable on CECL intended to cover one main topic as well as a secondary topic. A large group was in attendance, with representatives from banks of various sizes, regulators, representatives from audit firms, as well as bank stock analysts and other readers of financial statements. Bank Policy Institute Proposal The primary topic was a letter containing a proposal made by the Bank Policy Institute (BPI) to FASB on November 5 identifying their concerns with CECL, as well as some proposed changes to address these concerns. The BPI is a banking trade group whose membership includes over 30 of the largest and most influential banks in the country. The first part of the letter asked for a delay in the implementation timeline as well as a more comprehensive study to be done to assess the “systemic and economic risks posed by CECL.”  The BPI’s proposed change to the standard is to essentially split the impact of CECL into three categories: Non-impaired financial assets Loss expectations within the first year would be recorded to provision for loan losses in the income statement Loss expectations beyond the first year would be recorded to Accumulated Other Comprehensive Income (AOCI) Impaired financial assets would have expected losses recorded entirely in earnings The entire proposal can be read here. If this splitting of the total expected losses sounds familiar, it may be because this proposal has a lot in common with the “three bucket approach” that was proposed back when FASB and IASB were attempting to converge on expected loss standards, and in fact has some elements in common with IFRS-9, IASB’s expected loss standard that went into effect in 2018. The BPI points to both the negative capital [...]

2019-02-13T18:29:56+00:00February 1st, 2019|Blog, CECL, Regulators|

Takeaways from the July 30, 2018 Ask the Regulators Webinar – Part 4

The July 30 installment of the “Ask the Regulators” series included speakers from the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the U.S. Securities and Exchange Commission (SEC), the Conference of State Bank Supervisors (CSBS), and the Financial Accounting Standards Board (FASB). The goals of the session were to: […]

2018-10-31T09:17:22+00:00August 31st, 2018|CECL, Regulators|

Takeaways from the July 30, 2018 Ask the Regulators Webinar – Part 3

The July 30 installment of the “Ask the Regulators” series included speakers from the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), the Conference of State Bank Supervisors (CSBS), and the Financial Accounting Standards Board (FASB). The goals of the session were to: […]

2018-10-31T09:18:20+00:00August 24th, 2018|CECL, Regulators|

Takeaways from the July 30, 2018 Ask the Regulators Webinar – Part 2

The July 30 installment of the “Ask the Regulators” series included speakers from the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), the Conference of State Bank Supervisors (CSBS), and the Financial Accounting Standards Board (FASB). The goals of the session were to: Share the agencies’ perspectives on 27 questions submitted by community institutions Demonstrate a consistency of views across agencies Share common challenges faced by community institutions about implementing CECL […]

2018-10-31T09:19:31+00:00August 17th, 2018|CECL, Regulators|

Takeaways from the July 30, 2018 Ask the Regulators Webinar

The July 30 installment of the  “Ask the Regulators” series included speakers from the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the U.S. Securities and Exchange Commission (SEC), the Conference of State Bank Supervisors (CSBS), and the Financial Accounting Standards Board (FDIC). The goals of the session were to: Share the agencies’ perspectives on 27 questions submitted by community institutions Demonstrate a consistency of views across agencies Share common challenges faced by community institutions about implementing CECL […]

2018-10-31T09:23:42+00:00August 10th, 2018|CECL, Regulators|

Regulators Respond to CECL

The agencies encourage financial institutions to begin planning implementation of the new standard and ensure that appropriate institution staff works closely with their senior executives and boards of directors during this transition. Institutions are encouraged to plan for the potential impact of the new standard on capital in advance of the new standard’s effective date. […]

2018-10-23T12:49:52+00:00June 17th, 2016|CECL, Regulators|