Small Banks to Get Fed’s Help on Loan Loss Accounting Revamp

U.S. community banks will get some regulator help to comply with the biggest change to bank accounting in decades, but details are scant on what the help will entail.

Banks with less than $1 billion in assets will be able to use a special tool developed by the Federal Reserve to gather data and crunch numbers to calculate losses on souring loans, as required by a major accounting rule that small banks must follow in 2023. The regulator plans to unveil details via webinar on July 15; it declined to offer more information when asked on Wednesday.

The ...