WASHINGTON–Three federal agencies have announced their approval of an option for financial institutions to phase in over three years the day-one regulatory capital effects of the “current expected credit losses” (CECL) accounting standard.
The Federal Reserve, Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency issued a joint release noting the final rule, as well as revisions to other regulations to reflect the update to the accounting standards.
The final rule is set to take effect April 1, 2019, but banking organizations that choose to adopt CECL ahead of that date may elect to adopt the rule as of the first quarter 2019.