WASHINGTON–The Federal Reserve has released a new tool it said is aimed at helping smaller banks calculate their allowances under the new current expected credit loss (CECL) accounting standard.
According to the Fed, the new spreadsheet-based tool is called the “Scaled CECL Allowance for Losses Estimator” (SCALE). The Fed said it draws on publicly available regulatory and industry data to aid community banks with assets of less than $1 billion.
The CECL accounting standard took effect for most public financial institutions in 2020, but smaller banks are not required to meet the standard, the same date most credit unions have to comply following the adoption of a recent rule by the NCUA board.
The Fed said SCALE will be officially launched July 15 in conjunction with a webinar during which it will answer questions about the new tool. The event will feature representatives from the Financial Accounting Standards Board and the Conference of State Bank Supervisors (CSBS).
Registration is available at AsktheFed.org.
The CECL accounting standard took effect for most public financial institutions in 2020, but smaller banks are not required to meet the standard, the same date most credit unions have to comply following the adoption of a recent rule by the NCUA board.
The Fed said SCALE will be officially launched July 15 in conjunction with a webinar during which it will answer questions about the new tool. The event will feature representatives from the Financial Accounting Standards Board and the Conference of State Bank Supervisors (CSBS).
Registration is available at AsktheFed.org.
Comments
Post a Comment
Please no profanity or political comments.