- FCA confirms greater access for SMEs to the Financial Ombudsman Service
- Nomura settles case of RMBS securitised by US Subsidiaries with US Department of Justice
- Number of first-time buyers reaches its highest level since June 2017
- Thriving SMEs to bolster growth of alternative finance
- UK Finance supports FCA plan to extend access to Ombudsman Service to smaller firms
- Monese launches business account in the UK, with Europe to follow soon
- ‘Rom-cons’ costing love-struck Brits thousands, says Barclays expired
- High-cost lenders should reassess their operational procedures, says Huntswood expired
- Mastercard is the first network to make signatures optional expired
- Federal Reserve study finds US payments fraud small but growing expired
- CEOs of big banks pull out of Saudi conference expired
- Study shows regional disparity in terms of where Angel investors are based and where they invest expired
17th April 2018
Federal Reserve approves proposal to revise regulatory capital rules
The Federal Reserve Board has approved a proposal to revise its 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 organisations 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.
In June 2016, the Financial Accounting Standards Board issued a new accounting standard for credit losses that includes the CECL methodology and replaces the existing incurred loss methodology for certain financial assets. The effective date of the standard varies for different banking organisations and may be early adopted in January 2019.
The Board is coordinating this rulemaking with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Comments on the proposal will be accepted for 60 days after publication in the Federal Register.