Joint Release
Federal Reserve Board of Governors
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release April 17, 2018
Media Contacts:
Federal Reserve Eric Kollig 202-452-2955
FDIC David Barr 202-898-6992
OCC Stephanie Collins 202-649-6870
FDIC: PR-26-2018
Last Updated 4/17/2018 communications@fdic.gov
Agencies Propose Transition of New Current Expected Credit Losses (CECL)
Accounting Standard into Regulatory Capital Framework
The federal banking agencies today proposed a revision to their regulatory capital rules
to address and provide an option to phase in the regulatory capital effects of the new
accounting standard for credit losses, known as the "Current Expected Credit Losses"
(CECL) methodology.
The proposal addresses the regulatory capital treatment of credit loss allowances under
the CECL methodology and would allow banking organizations to phase in the day-one
regulatory capital effects of CECL adoption over three years. The proposal would revise
the agencies' regulatory capital rules and other rules to take into consideration
differences between the new accounting standard and existing U.S. generally accepted
accounting principles.
In June 2016, the Financial Accounting Standards Board issued a new accounting
standard for credit losses that includes the CECL methodology, which replaces the
existing incurred loss methodology for certain financial assets.
The notice of proposed rulemaking applies to all banking organizations. Comments on
this proposal will be accepted for 60 days after publication in the Federal Register.
Attachment: Current Expected Credit Losses (CECL) Proposed Rule
###
Federal Reserve Board of Governors
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release April 17, 2018
Media Contacts:
Federal Reserve Eric Kollig 202-452-2955
FDIC David Barr 202-898-6992
OCC Stephanie Collins 202-649-6870
FDIC: PR-26-2018
Last Updated 4/17/2018 communications@fdic.gov
Agencies Propose Transition of New Current Expected Credit Losses (CECL)
Accounting Standard into Regulatory Capital Framework
The federal banking agencies today proposed a revision to their regulatory capital rules
to address and provide an option to phase in the regulatory capital effects of the new
accounting standard for credit losses, known as the "Current Expected Credit Losses"
(CECL) methodology.
The proposal addresses the regulatory capital treatment of credit loss allowances under
the CECL methodology and would allow banking organizations to phase in the day-one
regulatory capital effects of CECL adoption over three years. The proposal would revise
the agencies' regulatory capital rules and other rules to take into consideration
differences between the new accounting standard and existing U.S. generally accepted
accounting principles.
In June 2016, the Financial Accounting Standards Board issued a new accounting
standard for credit losses that includes the CECL methodology, which replaces the
existing incurred loss methodology for certain financial assets.
The notice of proposed rulemaking applies to all banking organizations. Comments on
this proposal will be accepted for 60 days after publication in the Federal Register.
Attachment: Current Expected Credit Losses (CECL) Proposed Rule
###