CECL on FASB, FSOC agendas today; NAFCU reiterates concerns
As NAFCU continues to pursue an exemption for credit unions from the Financial Accounting Standards Board’s (FASB) current expected credit loss (CECL) standard, the association will monitor two meetings today for updates on possible guidance or relief.
NAFCU will monitor FASB’s board meeting today, slated to begin at 8 a.m. Eastern. On the board’s agenda is a discussion on issues related to the standard’s implementation. NAFCU has devoted considerable time and resources to educate credit unions on CECL requirements, and to share the industry’s concerns with FASB. The association has also shared concerns with lawmakers, the NCUA and Federal Reserve, and has worked to obtain certain changes and more guidance on the standard.
During a House Financial Services subcommittee hearing last week focused on CECL’s impact on financial institutions, witnesses noted that larger financial institutions are having trouble preparing for this standard and said smaller financial institutions – especially those focused on small-business lending and other services typically offered by smaller institutions – will have an especially difficult time complying with CECL.
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