Saying that the Current Expected Credit Loss accounting standard “clearly did not improve safety and soundness”, Federal Reserve Vice Chair for Supervision Michelle Bowman today called for a repeal, exemption or practical expedient to be available for community banks in estimating credit losses in their financial statements.
Bowman’s comments came during a roundtable held by FASB in assessing the CECL standard. Roundtable participants included ABA members and staff, as well as FASB members, investment analysts, representatives from the banking agencies and auditing firms. Bowman’s position largely corresponds to comments made in the American Bankers Association’s letter to FASB on the CECL standard.
FASB expects to wrap up its review of the CECL standard by the end of the year.
