FDIC Chair Jelena McWilliams Urges FASB to Allow Banks to Focus on COVID-19-Related Challenges
Today we are confronting new and uncertain challenges in view of the worldwide pandemic. The nation's banking industry is responding to rapidly evolving business conditions that are unprecedented in our history.
FDIC Chair Jelena McWilliams
Today we are confronting new and uncertain challenges in view of the worldwide pandemic. The nation's banking industry is responding to rapidly evolving business conditions that are unprecedented in our history.
FDIC Chair Jelena McWilliams
FDIC Chair Jelena McWilliams urged the Financial Accounting Standards Board ("FASB") to delay the implementation of an accounting standards update in order to allow banks to focus on addressing the impact of COVID-19.
In a letter to the FASB, Ms. McWilliams emphasized the importance of supporting the banking industry as it confronts "new and uncertain challenges" associated to COVID-19 by:
- excluding COVID-19-related modifications when determining a troubled debt restructuring classification, and instead encouraging banks to accommodate borrowers by offering loan adjustments and payment extensions;
- offering banks subject to the "Measurement of Credit Losses on Financial Instruments" methodology (for assessing current expected credit losses ("CECL")) to have the option of delaying its implementation; and
- allowing banks that are not currently required to implement CECL to focus on the immediate business challenges posed by COVID-19.