NCUA chairman backs NAFCU’s call for CU CECL exemption

Rodney Hood (CUNA photo)

NCUA Chairman Rodney Hood Thursday called on the Financial Accounting Standards Board (FASB) to exempt credit unions from the current expected credit loss (CECL) standard. Since 2016, when the standard was issued, NAFCU has continuously urged FASB to exempt credit unions from the standard due to their unique capital framework and the negative impact the standard could have on the industry.

“We applaud NCUA Chairman Rodney Hood for urging the Financial Accounting Standards Board to exempt credit unions from complying with FASB’s CECL standard,” said NAFCU President and CEO Dan Berger. “NAFCU has pushed hard for credit unions to be exempt from this onerous and costly accounting standard as it could place significant strains on credit unions’ capital levels, particularly amid the coronavirus pandemic.”

NAFCU has worked closely with the NCUA to reduce CECL’s burden on the industry, most recently asking the agency to press FASB for more relief for credit unions in a discussion with NCUA Board Member J. Mark McWatters last week. NAFCU also reiterated its CECL concerns to Hood during a February meeting; NAFCU has consistently shared these concerns with Hood since he took office last year.

 

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