CECL Delay Until 2023

The Financial Accounting Standards Board (FASB) agreed to delay the implementation date for the current expected credit loss (CECL) standard for credit unions until January of 2023.  In addition to the delay, the proposal replaces its current three buckets of groups with two, SEC filers and all others which includes credit unions.  The proposal will have a 30-day comment period starting the day that the proposal is officially released. “This is welcomed news for credit unions but CECL is what we hear most concern about from member credit unions” said Scott Sullivan, President/CEO of the Nebraska Credit Union League.  “CECL is a huge regulatory burden that will undoubtedly have a negative impact on lending to low-income individuals and the financially vulnerable” Sullivan said.  FASB announced that they are planning training sessions across the country to discuss issues and to help small financial institutions with compliance.