Joint Release
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
For immediate release October 17, 2019
Federal Financial Regulatory Agencies Seek Comment on Proposed Interagency
Policy Statement on Allowances for Credit Losses and Proposed Interagency
Guidance on Credit Risk Review Systems
Four federal financial regulatory agencies today requested comment on a proposed
Interagency Policy Statement on Allowances for Credit Losses. This proposed policy
statement is intended to promote consistency in the interpretation and application of the
Financial Accounting Standards Board's (FASB) credit losses accounting standard,
which introduces the current expected credit losses (CECL) methodology.
The proposed 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. CECL is effective for most
public financial institutions beginning in 2020, and the FASB recently decided to defer
the effective date of CECL for all other institutions to 2023. The proposed interagency
policy statement would be effective at the time of each institution's adoption of the credit
losses accounting standard.
The agencies also are requesting comment on the proposed 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.
The proposals were issued by the Federal Reserve Board, the Federal Deposit
Insurance Corporation, the National Credit Union Administration, and the Office of the
Comptroller of the Currency. Comments on each proposal will be accepted for 60 days
after publication in the Federal Register.
# # #
Attachments:
Proposed Interagency Policy Statement on Allowances for Credit Losses
Proposed Interagency Guidance on Credit Risk Review Systems
Media Contacts:
Federal Reserve Board Darren Gersh (202) 452-2955
FDIC Julianne Fisher Breitbeil (202) 898-6895
NCUA John Fairbanks (703) 518-6336
OCC Stephanie Collins (202) 649-6870
FDIC: PR-91-2019
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
For immediate release October 17, 2019
Federal Financial Regulatory Agencies Seek Comment on Proposed Interagency
Policy Statement on Allowances for Credit Losses and Proposed Interagency
Guidance on Credit Risk Review Systems
Four federal financial regulatory agencies today requested comment on a proposed
Interagency Policy Statement on Allowances for Credit Losses. This proposed policy
statement is intended to promote consistency in the interpretation and application of the
Financial Accounting Standards Board's (FASB) credit losses accounting standard,
which introduces the current expected credit losses (CECL) methodology.
The proposed 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. CECL is effective for most
public financial institutions beginning in 2020, and the FASB recently decided to defer
the effective date of CECL for all other institutions to 2023. The proposed interagency
policy statement would be effective at the time of each institution's adoption of the credit
losses accounting standard.
The agencies also are requesting comment on the proposed 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.
The proposals were issued by the Federal Reserve Board, the Federal Deposit
Insurance Corporation, the National Credit Union Administration, and the Office of the
Comptroller of the Currency. Comments on each proposal will be accepted for 60 days
after publication in the Federal Register.
# # #
Attachments:
Proposed Interagency Policy Statement on Allowances for Credit Losses
Proposed Interagency Guidance on Credit Risk Review Systems
Media Contacts:
Federal Reserve Board Darren Gersh (202) 452-2955
FDIC Julianne Fisher Breitbeil (202) 898-6895
NCUA John Fairbanks (703) 518-6336
OCC Stephanie Collins (202) 649-6870
FDIC: PR-91-2019