European Sustainability Reporting Standards (ESRS) / ESG regulation / The Sarbanes-Oxley Act

CECL Deferred for Banks Due to the Impact of the COVID-19 Pandemic

Ariste Reno, Managing Director Risk and Compliance

CECL is on the verge of being deferred. Late yesterday, the Senate passed its $2.2 trillion stimulus package. The final bill indicates that no insured depository institution, bank holding company, or any affiliate thereof shall be required to comply with the Current Expected Credit Loss (CECL) standard during the national emergency, until as long as December 31, 2020. We expect the Senate legislation to be enacted quickly.

The situation is moving so quickly that, at this time, it is difficult to know what to plan for, but in a just-published Flash Report we detail a few things we do know and provide initial guidance on key issues for organizations to consider as they transition to CECL or revert to the Incurred Loss framework.

Read the Flash Report here.

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