Regulatory Alerts2019-10-17 | 2019-22655Interagency Policy Statement on Allowances for Credit Losses
The OCC, Federal Reserve, FDIC, and NCUA issued a proposed interagency policy statement to align supervisory expectations with the Financial Accounting Standards Board's new Current Expected Credit Losses methodology. The document outlines requirements for measuring expected credit losses, maintaining appropriate allowances, and establishing robust internal controls and documentation processes. It also defines the oversight responsibilities of boards of directors and management while replacing previous guidance on allowance for loan and lease losses.
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