Skip to main content
OCC Flag

An official website of the United States government

OCC Bulletin 2019-10 | February 25, 2019

Implementation of the Current Expected Credit Losses Standard: Final Rule


Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies of Foreign Banks; Department and Division Heads; All Examining Personnel; and Other Interested Parties


On February 14, 2019, the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation (collectively, the agencies) published a final rule in the Federal Register to implement the Financial Accounting Standards Board's Accounting Standards Update (ASU) 2016-13, "Financial Instruments—Credit Losses," in the agencies' rules. The final rule conforms definitions in the agencies' capital and non-capital rules to the current expected credit losses (CECL) standard and provides an optional regulatory capital transition for banks that experience a decrease in capital as a result of adopting the CECL standard.

Note for Community Banks

The final rule, including the optional regulatory capital transition, applies to all community banks.


The final rule

  • updates references in the agencies' risk-based capital rules to conform with the new terminology used in ASU 2016-13.
  • updates references to allowances in the OCC's non-capital regulations to conform with the new terminology used in ASU 2016-13.
  • provides an option to elect a three-year regulatory capital transition under the risk-based capital rules for banks that experience a capital decrease as a result of implementing ASU 2016-13.

Further Information

Please contact Jung Sup Kim, Risk Specialist, Capital Policy Division, at (202) 649-6370; Jeffrey Geer, Associate Chief Accountant, Office of the Chief Accountant, at (202) 649-6280; or Kevin Korzeniewski, Counsel, Office of the Chief Counsel, at (202) 649-5490.


Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel

Related Link