No Extra Delay on Loan Loss Rules for Smaller Banks

A persistent push by some credit unions, lawmakers, and bank lobbyists to delay the biggest change to bank accounting in decades has come up dry.

The Financial Accounting Standards Board on Oct. 16 held firm to a plan to make big banks start recording losses earlier on failing loans starting in 2020 and other institutions follow suit beginning in 2023.

The accounting rulemakers also resisted calls from some audit firms and small banks to widen the pool of financial institutions that could benefit from extra time to implement the current expected credit losses (CECL) standard.

“Today we’re making the right ...