The current expected credit losses (CECL) accounting methodology adopted by the accounting industry’s governing board is among the items included on a preliminary executive agenda for a planned Dec. 19 meeting of the Financial Stability Oversight Council (FSOC).
The FSOC is chaired by the Treasury secretary and includes members from the federal financial institution and markets regulators, among others. Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the panel is charged with identifying risks and responding to emerging threats to financial stability.
The council’s Dec. 19 preliminary executive agenda includes CECL as well as the work of the council’s digital assets and distributed ledger technology working group; and potential amendments to the council’s interpretive guidance on nonbank financial company designations. The preliminary open agenda includes the council’s 2018 annual report.
The council’s voting members include the Treasury secretary and the heads of the Federal Reserve Board, Federal Deposit Insurance Corp. (FDIC), Office of the Comptroller of the Currency (OCC), National Credit Union Administration (NCUA), Bureau of Consumer Financial Protection (BCFP, formerly known as CFPB), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Federal Housing Finance Agency (FHFA); and an independent member with insurance expertise. Non-voting members are from the federal Office of Financial Research, Federal Insurance Office, a state insurance commissioner, state banking supervisor, and a state securities officer (or similar).