Small Banks May Get More Time on Loan Loss Accounting Change

Small publicly traded banks, credit unions, and community banks may get more time to overhaul how and when they calculate potential losses on souring loans.

The Financial Accounting Standards Board plans to put the idea to a vote on July 17 as part of a broader discussion on whether to give more time to smaller public companies and privately held businesses for several new accounting standards that have been published recently but aren’t yet in force.

The argument in favor of more time to implement the current expected credit losses (CECL) accounting standard comes down to resources, said Shayne Kuhaneck, ...