CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » CECL delay bill would ensure impact is properly studied
Policy & Issues

CECL delay bill would ensure impact is properly studied

May 22, 2019

CUNA maintains its longstanding position that the current expected credit loss (CECL) standard is inappropriate for credit unions, and backed a bill Wednesday that would require the standard to be delayed and studied by the Securities and Exchange Commission along with the federal financial regulators, including the NCUA. Sen. Thom Tillis (R-N.C.) introduced the Continued Encouragement for Consumer Lending Act (S. 1564) Tuesday.

CECL is a new accounting standard that changes the accounting for credit losses, recognizing lifetime expected credit losses instead of the current “incurred-loss” approach. CUNA is concerned with both the compliance burden the new standard will bring, as well as its effect on the financial standing of credit unions.

“CECL is intended to address delayed recognition of credit losses resulting in insufficient funding of the allowance accounts of certain covered entities. However, underfunding of allowance accounts has not generally been an issue for credit unions. Further, the typical user of a credit union’s financial statements is not a public investor—such as with large, public banks—but instead is the credit union’s prudential regulator, the National Credit Union Administration.”

The letter notes that CUNA understands that the Financial Accounting Standards Board (FASB), which issued the standard, is an independent entity but Congress should utilize its authority to “improve CECL, or at a minimum, ensure there is sufficient, relevant information regarding CECL’s impact from which future decisions can be made.”

The letter also quotes recent CUNA research showing that nearly one in five credit unions expect CECL to negatively impact credit unions’ members ability to obtain credit.

KEYWORDS cecl
Credit Union Magazine - Spring 2021

Spring 2021

Credit Union Magazine’s Spring 2021 edition features CUNA's 2021 advocacy agenda, strategic planning guidance, and labor market insights.
Digital Edition •  Subscribe

Trending

  • Federal, state regulators release updates to BSA/AML Examination Manual

  • FHFA Extends forbearance, foreclosure and REO eviction moratoriums

  • PODCAST: GAC preview, part 1

Tweets by CUNA_News

Polls

Who should be the 2021 Credit Union Hero of the Year?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors