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Statement

Joint Financial Trades Statement on FSOC Review of CECL Accounting Standard

“Access to stable, long-term credit products during good economic times and bad is a hallmark of the American financial system. Financial institutions of all sizes and charters together create an economic engine that fuels homeownership, entrepreneurship, educational attainment and other important life goals.  While well intentioned, the Current Expected Credit Loss accounting standard issued by the Financial Accounting Standards Board has the potential to disrupt lending to consumers and small businesses, increase the volatility of regulatory capital, and exacerbate procyclicality in our financial system.
 
“All of our organizations, which together represent the financial institutions serving the vast majority of consumers and businesses in this country, are encouraged that the Financial Stability Oversight Council will be discussing CECL at its upcoming meeting. This review is warranted given the risks posed by this proposal. A change of this magnitude deserves discussion and vetting at the highest levels. We urge the FSOC to seek a delay in CECL implementation until a transparent quantitative impact study is performed and shared with the industry.
 
“Industry analysts and practitioners believe that CECL could have profound macroeconomic and public policy implications on our nation’s credit system. We urge policymakers – at a minimum – to pause, study and understand the very real impact CECL could have before deciding whether to move forward.”
 

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $18 trillion banking industry, which is composed of small, regional and large banks. Together, America’s banks employ more than 2 million men and women, safeguard $14 trillion in deposits and extend more than $10 trillion in loans.

About the Bank Policy Institute

The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.

About the Consumer Bankers Association

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.

About the National Association of Federally-Insured Credit Unions

The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.

About CUNA 

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 110 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.

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CBA Media Contact: Nick Simpson

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Blair Bernstein

(202) 663-5468

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BPI Media Contact: Sean Oblack

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NAFCU Media Contact: Jacqueline Ortiz Ramsay

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