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For Immediate Release
December 18, 2018
ABA Media Contact: Blair Bernstein
(202) 663-5468
Follow us on Twitter: @ABABankers

ABA Statement on FDIC’s CECL Transition Rule

By Rob Nichols, ABA president and CEO

​“ABA appreciates today’s acknowledgement by the FDIC that the Current Expected Credit Loss model presents a substantial change to bank accounting and ultimately, the business of lending. Unfortunately, the implementation phase-in approved today does not go far enough to ensure CECL will function as intended.
“Banks have long been concerned about CECL’s cost and impact on our ability to serve our customers and communities, particularly in times of economic stress. That’s why ABA believes CECL must be delayed until a quantitative impact study can be conducted and the economic consequences of the accounting standard are fully understood. 
“We are encouraged that a growing number of policymakers are recognizing the risks posed by CECL, and we will continue our appeal for a thorough review of the standard’s impact on banks, lending, and the broader economy before determining whether implementation should move forward.”
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The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, midsize, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans.