Senate Banking Chairman Mike Crapo (R-ID) introduced an amendment to the proposed COVID relief package that delays the Current Expected Credit Loss (CECL) accounting standard for all entities, not just depositories, until either the first day of the fiscal year after the pandemic national emergency ends, or January 1, 2023, whichever comes first.
AFSA has long supported a delay in the CECL standard, as well as parity among financial institutions. The CECL standard requires financial institutions to recognize and reserve for the full estimated credit loss on a loan at origination, thereby injecting uncertainty and unpredictability in credit loss decisions. Particularly now, in the face of an economic recession, when lending is most needed, financial institutions will have to limit the credit they offer because they have to reserve all expected credit losses at origination if CECL is not delayed.
Delaying CECL would allow all financial institutions to focus on meeting consumer and business needs during this unprecedented time. We applaud Chairman Crapo for the amendment and will work for its incorporation into the final COVID relief package.
Senate Banking Chairman Mike Crapo (R-ID) introduced an amendment to the proposed COVID relief package that delays the Current Expected Credit Loss (CECL) accounting standard for all entities, not just depositories, until either the first… Read the rest
This week, the American Financial Services Association (AFSA) commented on the Consumer Financial Protection Bureau’s (CFPB) proposed rule to facilitate the transition away from LIBOR to a replacement index. LIBOR is an index used by … Read the rest
After Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger testified before the Senate Banking Committee, which AFSA summarized here, she testified before the House Committee on Financial Services.
During the July … Read the rest
The AFSA Annual Meeting & Independents Conference & Expo is moving completely online. And we’re using the opportunity to redefine and reimagine the AFSA meeting experience from the virtual ground up.
The conference agenda will… Read the rest
“As you consider potential financial provisions for the COVID-19 response legislation now under discussion, we ask that you refrain from adding new credit reporting provisions that may negatively affect consumers,” the American Financial… Read the rest
AFSA has expressed concerns about the effect that the Current Expected Credit Loss (CECL) accounting standards have on financial institutions. Earlier this year, Congress extended the implementation date for banks to comply with the new… Read the rest
The featured Business Partner for August is Datascan.
DataScan has established itself as the North American leader in providing dealer floorplan lenders with technology-based solutions for wholesale asset financing and inventory risk… Read the rest
Today the Senate Banking, Housing, and Urban Affairs Committee held a hearing with the Director of the Consumer Financial Protection Bureau (CFBP), Kathleen Kraninger, to discuss the Bureau’s most recent Semi-Annual Report to Congress.… Read the rest
Given the world in which we currently live, companies can no longer return to a static plan. What’s needed now is a dynamic strategy based on the ability to quickly absorb information and rapidly incorporate lessons learned in the marketplace.… Read the rest
