OCC BULLETIN 2016-45
Subject: Current Expected Credit Losses
Date: December 19, 2016
To: Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies of Foreign Banks; Department and Division Heads; All Examining Personnel; and Other Interested Parties
Description: Interagency Frequently Asked Questions on the New Accounting Standard on Financial Instruments – Credit Losses
The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, the agencies) are publishing frequently asked questions to assist financial institutions and examiners with the new accounting standard, Accounting Standards Update 2016-13, Topic 326, “Financial Instruments – Credit Losses,” issued by the Financial Accounting Standards Board (FASB) on June 16, 2016. The new accounting standard introduces the current expected credit losses methodology (CECL) for estimating allowances for credit losses. The effective date of the new credit losses standard depends on the financial institution’s characteristics. For U.S. Securities and Exchange Commission filers, the new credit losses standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.
The frequently asked questions
Please contact the OCC at CECL@occ.treas.gov with CECL questions. For questions about this bulletin, please contact Sydney Menefee, Deputy Chief Accountant, or Megan Bocko, Professional Accounting Fellow, Office of the Chief Accountant, at (202) 649-6380.
Grace E. Dailey