Credit Union Regulator Calls for Loan Loss Accounting Exemption

April 30, 2020, 5:41 PM

Credit unions should be exempt from major accounting rules that will force them to book losses before they happen, the credit union regulator said Thursday.

National Credit Union Administration Chairman Rodney Hood told the Financial Accounting Standards Board that the costs for credit unions to comply with the current expected credit losses (CECL) standard “overwhelmingly” exceed the benefit.

“I am especially concerned that adopting CECL will have a chilling effect on lending, including loans to low-income borrowers,” Hood wrote in a letter to the board.

Large publicly traded banks had to comply with the ...

To read the full article log in. To learn more about a subscription click here.