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Banks Ask Congress to Continue Loan-Loss Opt-Out, Pass Virus Aid

Nov. 19, 2020, 4:55 PM

Banks want Congress to reignite stalled economic aid negotiations and extend several accounting and financial regulatory flexibility provisions included in the CARES Act.

Adoption of the Current Expected Credit Losses (CECL) accounting standards should continue to be delayed, the American Bankers Association said in a letter to leaders of the House Financial Services and Senate Banking committees.

  • CECL requires public companies to set aside reserves for loans and other financial instruments up front, instead of when it is apparent the assets will sour. Large companies had to comply with the standard starting Jan. 1, but smaller companies have until 2023. ...