Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments to Other Regulations

Title:
Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments to Other Regulations
Subject: CECL
Agency: FDIC, Federal Reserve, OCC
Status: Final rule
Summary:
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are adopting a final rule to address changes to credit loss accounting under U.S. generally accepted accounting principles, including banking organizations’ implementation ofthe current expected credit losses methodology (CECL). The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In addition,the final rule revises the agencies’ regulatory capital rule, stress testing rules, and regulatorydisclosure requirements to reflect CECL, and makes conforming amendments to other regulations that reference credit loss allowances.
FR Doc: 2018-28281
Date proposed: May 11, 2018
Comments due date:

 

Final rule effective date: April 1, 2019 (banking organizations that choose to early adopt CECL may elect to adopt the rule as of the first quarter 2019)
Rule compliance date:
Agency release:

Joint Release: Agencies Allow Three-Year Regulatory Capital Phase In for New Current Expected Credit Losses (CECL) Accounting Standard

Related Reg Report item(s):

With press release, agencies make official 3-year CECL phase in (effective April 1)

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