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FASB mulls delay of new credit loss rule for small lenders, CUs

The two years of transition to the Financial Accounting Standards Board rule called Current Expected Credit Losses — or CECL, for short — may extend to five years for smaller banks and credit unions.  FASB met this week and voted for a proposal to extend the implementation deadline, but only for small public banks, private lenders, […]

Competitive (Dis)Advantage: The Data Reporting Standard Set to Disrupt Auto Finance

A new accounting regulation with a staggered implementation schedule is on track to disrupt the auto finance playing field. The Financial Accounting Standards Board (FASB) rule called Current Expected Credit Losses — or CECL, for short — requires lenders to reserve for the lifetime of a loan’s losses upon origination, which could double loss provisions […]

New Accounting Rule Likely to Hike Lending Costs

As U.S. financial institutions start to implement a new loan-loss accounting guideline this week, Jefferies Equity Analyst John Hecht forecasts higher lending costs down the road. The Current Expected Credit Losses (CECL) model, introduced by the Financial Accounting Standards Board in 2016, outlines how banking institutions account for and reserve against loan losses. Early adoption […]