AFSA Supports Bipartisan Legislation to Delay & Study CECL
AFSA has offered its support for H.R. 3182, legislation introduced by Representatives Vicente Gonzalez (D-TX), Ted Budd (R-NC) and a bipartisan group of lawmakers, to delay the implementation of the Federal Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) standard until the Security and Exchange Commission conducts a quantitative impact study. Senator Thom Tillis (R-NC) introduced a companion bill in the Senate in May. The CECL standard would significantly change accounting practices by requiring financial institutions to recognize and reserve for expected credit losses over the life of the loan.
AFSA has continually expressed its concerns to federal financial regulators and members of Congress about CECL’s potential impact on the cost and availability of much-needed credit products and its potential to accelerate an economic downturn and impede growth. In its support letter, AFSA praised the bill’s introduction stating, “It is essential that the consequences of such fundamental accounting changes on consumers, financial institutions, and the broader U.S. economy are clearly understood before they are implemented.”
June 20th, 2019 by Dan Bucherer