The $two trillion crisis aid deal now headed to President Trump’s desk gives huge banking companies a short-term reprieve from a important improve in bank accounting standards, marking a uncommon intervention by Congress in what is ordinarily the domain of the Fiscal Accounting Criteria Board.
Massive publicly-traded banking companies were being supposed to adopt the current expected credit rating losses (CECL) accounting regular on Jan. 1. But the CARES Act handed by the Home on Friday gives them right up until Dec. 31 — or when the coronavirus national crisis finishes, whichever arrives to start with — to overhaul how they account for losses on souring financial loans.
The January 2023 deadline for privately held banking companies, credit rating unions, and smaller sized community providers to comply remains in spot.
The CECL hold off was included in the monthly bill more than the objections of Kathleen Casey, chair of the