Categories: FDIC

Technical Corrections to the Revised Transition of the Current Expected Credit Losses Methodology for Allowances

FIL-48-2020
April 22, 2020

Technical Corrections to the Revised Transition of the Current Expected Credit Losses Methodology for Allowances

Printable Format:

FIL-48-2020 – PDF (PDF Help)

Summary:

The Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Board of Governors of the Federal Reserve System (the agencies) published a technical correction, final rule in the Federal Register that corrects errors in and clarifies the March 31, 2020 interim final rule (IFR) that provides a five-year transition period for the impact of the current expected credit loss methodology (CECL) on regulatory capital.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter is applicable to banks that were required (as of January 1, 2020) to adopt CECL under U.S. generally accepted accounting principles.

Highlights:

The final rule:

  • Corrects the unintentional omission of “Category III” banking organizations from the supplementary leverage ratio provision in paragraph (c)(2) of section 301 of the capital rules;
  • Clarifies that changes to the calculation of the supplementary leverage ratio apply to all banking organizations that must comply with the supplementary leverage ratio requirement;
  • Clarifies that to the extent there is a day-one change for retained earnings, temporary difference deferred tax assets and credit loss allowances, an electing banking organization would calculate each transitional amount as a positive or negative number; and
  • Includes certain other minor technical corrections to the IFR.
IR Press

Share
Published by
IR Press

Recent Posts

Acting Comptroller Testifies on State of the Federal Banking System

WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the state of the federal banking system…

7 hours ago

Remarks by Assistant Secretary for International Finance Brent Neiman on the U.S. Cross-Border Payments Agenda

As Prepared for Delivery Thank you very much for the opportunity to be here today, and…

2 days ago

Remarks by Assistant Secretary for Investment Security Paul Rosen at the Third Annual CFIUS Conference

As Prepared for Delivery Good afternoon.  I’d like to start by thanking our panelists today for…

2 days ago

U.S. Department of the Treasury Releases Final Rules to Expand Access to Clean Energy Tax Credits

Final rules will improve access to direct pay for co-owned clean energy projects, helping to…

2 days ago

Treasury Targets Key Hamas Leaders and Financiers

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)…

2 days ago

Treasury Targets Fentanyl Traffickers and Other Key Contributors to U.S. Opioid Crisis

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned…

2 days ago