Credit Union Group Makes Long-Shot Plea on Loan Loss Rule (1)

Oct. 7, 2021, 6:43 PMUpdated: Oct. 7, 2021, 10:39 PM

Major new loan loss accounting rules are “problematic and arguably unnecessary,” a credit union trade group said in a plea to U.S. accounting rulemakers to exempt the financial institutions from the rules.

The current expected credit loss (CECL) standard “will hinder lenders’ (including credit unions) ability to uplift low- and moderate-income borrowers in their goal of achieving financial independence and the American dream,” the Credit Union National Association wrote to the Financial Accounting Standards Board on Wednesday.

If FASB doesn’t exclude credit unions from the rule, CUNA asked the board to consider an extension of at least ...

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