Fed Lets Banks Delay Capital Hit From Loan Loss Accounting (2)

U.S. banks are getting another break from controversial accounting rules on loan losses, with the Federal Reserve letting lenders delay taking a hit to their capital levels from the new regulations.

Banks required to adopt the updated accounting requirements in 2020 can hold off on implementing “the estimated cumulative regulatory capital effects for up to two years,” the Fed and other banking regulators said in a Friday statement.

The new rules -- known as the current expected credit losses method, or CECL -- have long been a source of angst for bankers. The regulations make lenders partially write down losses ...