A webinar to discuss a new transition provision in an interagency Interim Final Rule (IFR) to delay the impact that the current expected credit losses methodology (CECL) for estimating allowances for credit losses has on regulatory capital will be held April 14, sponsored by the federal banking agencies.
The Federal Deposit Insurance Corp. (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) have jointly scheduled the event for 3 p.m. on April 14.
In a financial institution letter (FIL-41-2020), the FDIC noted that the agencies recently adopted an IFR delaying the estimated impact on regulatory capital stemming from the implementation of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses, Topic 326, Measurement of Credit Losses on Financial Instruments (referring to the CECL accounting standard).
The transition provision under the IFR is available to banking organizations that are required by U.S. GAAP to adopt CECL in 2020, the FDIC noted.