No Delay, No Major Changes Expected to New Loan Loss Rules (1)

Banks and other financial institutions shouldn’t expect any last-minutes revisions to a historic rule change for calculating loan loss allowances set to kick in next year.

Financial Accounting Standards Board member Hal Schroeder said no substantive changes in the accounting rules for current expected credit losses, or CECL, are expected before they take effect in 2020. And he sees no reason to delay the accounting change.

The largest banks are prepared to implement the new accounting on time. And other financial institutions have at least an extra year to adopt the accounting standard, Schroeder said May 7 in remarks at ...