Bank Groups, Audit Firms Call for More Credit Loss Relief

Banks and credit unions are telling U.S. accounting rulemakers to give them more relief as the Financial Accounting Standards Board weighs delaying when many organizations must comply with major new loan loss rules.

A bevy of bank trade groups, credit unions, audit firms, and banks pleaded with FASB to consider more time for financial institutions to upend how they calculate losses on souring loans.

As written, FASB’s proposal gives until 2023 for credit unions, privately held banks, and publicly traded banks that qualify as “smaller reporting companies” under SEC guidelines to follow the current expected credit losses (CECL) accounting ...