During a lively Breakout Session at CBAI's 42nd Annual Convention community bankers heard first-hand accounts of how their aggressive advocacy efforts, and those of the associations that exclusively represent their interests, resulted in significant revisions to the proposed Financial Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) model.
CBAI member Greg Ohlendorf (President and CEO of First Community Bank and Trust in Beecher, Illinois) and James Kendrick (ICBA’s Vice President of Accounting and Capital Policy) represented the nation’s community banks in numerous meetings with FASB and described the significant concessions and accommodations community bankers received leading up to the final release of CECL. The new accounting rule will now be more manageable than what was first proposed as it will not require complex and costly models, benchmark increases to allowance levels, or loss forecasts for the entire life of loan.
Kendrick and Ohlendorf gave the Breakout Session attendees a revealing peek behind the curtain of this regulatory rulemaking process including the events leading up to a contentious meeting with FASB on the cusp of the release of the CECL. Community bankers also learned what the banking regulators are saying about their CECL implementation plans and what bankers need to be doing (and not doing) right now to prepare for this new mandatory credit loss model.
This informative discussion clearly reinforced the fact that community banker advocacy is important and truly does make a difference.
September 17, 2016
FASB Revises the Current Expected Credit Loss Model – June 16, 2016
CECL Update – CBAI Member Attends FASB Meeting – February 15, 2016
ICBA Press Releases
FASB Makes Major Improvements to Accounting Standard – June 16, 2016
FASB Continues Progress with Revised Accounting Disclosure – April 27, 2016
CECL Reforms Show FASB Listening to Community Banks – April 22, 2016
ICBA to FASB: Hit Stop Button on Dangerous Accounting Plan – February 4, 2016
Joint Statement by the Regulators – June 17, 2016