CECL delay needed in light of coronavirus
WASHINGTON, DC (March 18, 2020) — Credit Union National Association (CUNA) President/CEO Jim Nussle contacted the Financial Accounting Standards Board (FASB) today, urging for a delay of the effective date of the current expected credit losses (CECL) standard as it applies to credit unions.
“At this time, it is critical that credit unions be able to focus on serving their members, who are facing mounting financial pressures due to COVID-19,” Nussle wrote. “Therefore, we urge the FASB to begin the process to delay the effective date of the CECL standard as it applies to credit unions until at least January 2024.”
CUNA also recommended that FASB suspend implementation of its CECL standard for at least one year in a letter to the White House on Monday.
Considering the current pandemic crisis, CUNA is advocating that credit unions be given additional time for compliance.
“While some credit unions are in the final stages of preparation, the vast majority are in the very early stages of gathering necessary data and beginning to make the numerous changes required under CECL,” Nussle added. “A one-year delay will help ensure our nation’s credit unions—the median of which is well under $50 million in assets—are prepared to comply.”
Credit unions are focused on keeping members, volunteers and employees safe and healthy, and remaining in a position to serve members and the community during and after the crisis.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.