- FATC report recognises the UK’s role as a leader in the fight against money laundering
- InnoCells moves into the Mexican market through digital start-up
- Schroders strengthens alternatives with Schroder GAIA Helix
- FCA findings on long-term mortgage arrears a timely study, says Target Group
- Huobi gains Distributed Ledger Technology licence in Gibraltar
- Millennium BCP is making the branch of the future a reality
- Warwick Business School and Bank of England launch online postgraduate programme expired
- London-based Fintech Curve sees customer take-up soar expired
- Thomas Crown asks whether cryptocurrencies offer safe haven if global economy slows expired
- Aegon migrates over 400,000 savings and investment accounts using Ohpen expired
- Banks spend £5bn a year tackling economic crime, says UK Finance expired
- UK property market has continued to stall, says Yomdel expired
17th April 2018
Federal Reserve approves proposal to revise regulatory capital rules
The Federal Reserve Board has approved a proposal to revise its regulatory capital rules to address and provide an option to phase in the regulatory capital effects of the new accounting standard for credit losses, known as the "Current Expected Credit Losses" (CECL) methodology.
The proposal addresses the regulatory capital treatment of credit loss allowances under the CECL methodology and would allow banking organisations to phase in the day-one regulatory capital effects of CECL adoption over three years. The proposal would revise the Board's regulatory capital rules and other rules to take into consideration the new accounting standard.
In June 2016, the Financial Accounting Standards Board issued a new accounting standard for credit losses that includes the CECL methodology and replaces the existing incurred loss methodology for certain financial assets. The effective date of the standard varies for different banking organisations and may be early adopted in January 2019.
The Board is coordinating this rulemaking with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Comments on the proposal will be accepted for 60 days after publication in the Federal Register.