Pointing to supplemental instructions reportedly issued March 13 and applicable to consolidated call reports for March 31, a bulletin issued by the national bank regulator Monday says banks meeting certain criteria will have an option to not report purchased credit-deteriorated (PCD) assets in nonaccrual status “on an interim basis.”
“The agencies plan to propose changes to the call report instructions to revise the nonaccrual treatment for PCD assets through the Paperwork Reduction Act process, which will include a request for comment,” it states.
The Office of the Comptroller of the Currency (OCC), in Bulletin 2020-16, noted that the OCC, Federal Reserve Board, and Federal Deposit Insurance Corp. (FDIC) on March 13 issued supplemental instructions to the Federal Financial Institutions Examination Council’s (FFIEC) Consolidated Reports of Condition and Income (call report) in response to comments received on the proposed Interagency Policy Statement on Allowances for Credit Losses.
The supplemental instructions, the bulletin states, pertain to nonaccrual treatment of PCD assets for the March 31, 2020, call report for banks that have adopted the Financial Accounting Standards Board’s Accounting Standards Update 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), and have PCD assets.
The instructions apply to the three versions of the call report (FFIEC 031, FFIEC 041, and FFIEC 051), the bulletin notes.