Compliance: Regulators update CECL FAQ document

The NCUA, along with other federal financial regulators, has posted a frequently asked questions (FAQ) document on the current expected credit loss (CECL) standard. CUNA has called on NCUA to provide credit unions with resources on CECL, which is a new accounting standard for estimating allowances for credit losses.

CECL will apply to all credit unions, banks, savings associations and financial institution holding companies for which the reporting requirements conform to U.S. generally accepted accounting principles (GAAP).

The notice makes clear that until CECL becomes effective, credit unions (and other institutions) must continue to follow current U.S. GAAP on impairment and the allowance for loan and lease losses (ALLL).  Existing ALLL policy statements and guidance will not be rescinded until CECL is effective for all institutions.


continue reading »