Comments due on CECL phase-in proposal
The Federal Reserve Board has announced it has approved a joint proposal with the OCC and FDIC to revise their regulatory capital rules to address and provide an option to phase in the regulatory capital effects of the new accounting standard for credit losses, known as the "Current Expected Credit Losses" (CECL) methodology. The proposal addresses the regulatory capital treatment of credit loss allowances under the CECL methodology and would allow banking organizations to phase in the day-one regulatory capital effects of CECL adoption over three years. The proposal would revise the Board's regulatory capital rules and other rules to take into consideration the new accounting standard. Comments on the proposal will be accepted for 60 days following publication.
Update: Published jointly by the Board, FDIC and OCC at 83 FR 22312, May 14, 2018. Comments are due July 13, 2018.