Implementation of Expected Credit Loss Model Would Be Delayed Till 2023
Washington, D.C. (July 17, 2019)—Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Financial Accounting Standards Board action on the Current Expected Credit Loss standard.
“ICBA supports today’s Financial Accounting Standards Board proposal to delay the effective date of the Current Expected Credit Loss accounting standards for many community banks until 2023. The delay for private companies and small public companies would help minimize the negative impact of CECL.
“Meanwhile, ICBA continues to support Senate and House legislation that would require regulators to study CECL’s impact and delay its effective date by one year. Introduced by Sen. Thom Tillis (R-N.C.) and Rep. Vicente Gonzalez (D-Texas), the bills would require the study to assess CECL’s impact on credit availability, regulatory capital and systemic risk.
“ICBA has worked with FASB officials since 2011 to achieve several substantive improvements to CECL and will continue to press for a more flexible CECL environment for the nation’s community banks.”
To learn more about the community banking industry’s CECL efforts, visit the ICBA website.
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in five U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.