Skip to main content
United States flag An official website of the United States government
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
Show

Agencies Issue Joint Statement on the New Accounting Standard on Financial Instruments – Credit Loss

June 2016
Agencies Issue Joint Statement on the New Accounting Standard on Financial Instruments – Credit Loss

Joint Release:

  • Board of Governors of the Federal Reserve System
  • Federal Deposit Insurance Corporation
  • National Credit Union Administration
  • Office of the Comptroller of the Currency

For Immediate Release: June 17, 2016

The four federal financial institution regulatory agencies today issued a joint statement regarding the new accounting standard, Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, issued by the Financial Accounting Standards Board. The joint statement also provides initial supervisory views regarding the standard’s implementation.

The new accounting standard applies to all banks, savings associations, credit unions, and financial institution holding companies, regardless of asset size. The standard allows for various expected credit loss estimation methods and is scalable.

The standard will become effective in 2020 for financial institutions required to file financial statements with the U.S. Securities and Exchange Commission or the appropriate federal banking agency under the federal securities laws. The new accounting standard will take effect in 2021 for all other financial institutions. Early adoption is permitted, but no earlier than in 2019.

The agencies encourage financial institutions to begin planning implementation of the new standard and ensure that appropriate institution staff works closely with their senior executives and boards of directors during this transition. Institutions are encouraged to plan for the potential impact of the new standard on capital in advance of the new standard’s effective date.

Attachment: Joint Statement

 

Media Contacts:

Agency Name Phone
Federal Reserve Eric Kollig (202) 452-2955
FDIC Julianne Breitbeil (202) 898-6895
NCUA Ben Hardaway (703) 518-6333
OCC Stephanie Collins (202) 649-6870

 

Current Expected Credit Losses (CECL)
Last modified on