Small Banks to Get More Time on Loan Loss Accounting Changes (1)

For months, U.S. accounting rulemakers have repeated the same message about major new rules about to hit banks’ bottom lines: expect to follow the rules on time and as is.

That message changed on July 17.

The Financial Accounting Standards Board voted unanimously to give small public banks, credit unions, and privately held institutions until 2023 to comply with the current expected credit losses (CECL) accounting standard.

If the board finalizes the plan, large publicly traded banks like Citigroup Inc., JP Morgan Chase & Co., and Wells Fargo & Co. would have to follow the new rules in 2020, ...