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ABA Statement on FDIC's CECL Transition Rule

“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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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.

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Blair Bernstein

(202) 663-5468

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