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CBAI Thanks Congressman Hultgren for Urging Delay in CECL Implementation

The Community Bankers Association of Illinois (CBAI) thanks Illinois Congressman Randy Hultgren (R-14th) for joining with 25 members of the United States House of Representatives in urging the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) to delay the implementation of the Current Expected Credit Loss (CECL) model. The letter urged “steps be taken to address the economic risks arising from the implementation of the new standards” as the final accounting rule has the “potential to negatively affect the cost and availability of credit, add volatility to the balance sheets of banks, and impact the ability of financial institutions to continue lending in stressful economic environments.” The letter requested the reevaluation of the accounting standard “be undertaken immediately” and that there be a delay in the implementation of CECL pending this important review.

CBAI and the ICBA actively participated in commenting on FASB’s proposed CECL model. While the final Rule, which was issued in 2016, reflected input from community bankers and their associations, a reevaluation of the accounting standard is warranted. CBAI appreciates Congressman Hultgern’s continued leadership on this important issue. Read Letter to FASB and SEC.