OCC BULLETIN 2019-10
Subject: Implementation of the Current Expected Credit Losses Standard
Date: February 25, 2019
To: 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
Description: Final Rule
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.
The final rule
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