Credit Unions Offered Capital Relief Ahead of Accounting Change

Credit unions would be able to blunt the effect of shoring up their capital when they overhaul their accounting for souring loans in 2023, under a proposal from the credit union regulator.

The National Credit Union Administration proposed on Thursday that the institutions have three years to phase in the change to the capital they hold when they switch to the current expected credit loss (CECL) accounting method. The NCUA move mirrors relief that financial regulators offered banks in December 2018.

• Credit unions with less than $10 million in assets wouldn’t have to follow CECL to calculate their ...