From the National Association of Federally-Insured Credit Unions (NAFCU):
Federal Reserve Vice Chairman of Supervision Randal Quarles acknowledged that implications of the Financial Accounting Standards Board’s (FASB) current expected credit loss (CECL) standard aren’t completely understood, but said the phased-in implementation of the standard should help mitigate issues.
Quarles was responding to a question from House Financial Services Subcommittee Chairman Blaine Luetkemeyer, R-Mo., who also voiced concerns about the increased costs smaller financial institutions will incur with the CECL standard.
Later during the hearing, Rep. Barry Loudermilk, R-Ga., raised additional concerns about the CECL standard making financial institutions less likely to approve certain loans during economic downturns. Quarles reiterated that the Fed is monitoring both immediate and long-term impacts the standard will have on the banking industry. READ MORE