Agencies Approve Early Adoption of SA-CCR, Delay of CECL Capital Phase-In

Posted: Apr 01 2020

The federal banking agencies have announced two actions intended to help banks ensure the continued flow of credit to households and businesses during the coronavirus pandemic. First, the agencies issued an interim final rule giving banks that are implementing the current expected credit loss standard this year the option to delay for two years the phase-in of the standard’s regulatory capital effects.

This extension comes in addition to the three-year phase-in period that was previously established. Institutions may also choose to follow the capital transition rule issued by the agencies in Feb. 2019, the agencies said.

Additionally, the agencies said they would allow early adoption of the standardized approach for measuring counterparty credit risk. Institutions may adopt SA-CCR for the reporting period ending March 31.

To read the CECL interim finale rule, visit: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20200327a2.pdf

To read the SA-CCR notice, visit: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20200327a1.pdf