Regulatory Alerts2023-04-27 | 2023-08876Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023)
The OCC, Federal Reserve Board, FDIC, and NCUA issued a revised interagency policy statement to align regulatory expectations for allowances for credit losses with updated Financial Accounting Standards Board guidance. The revision removes troubled debt restructuring accounting rules and corrects a citation while preserving the current expected credit losses methodology, internal control standards, and management responsibilities. Effective upon each institution’s adoption of FASB ASC Topic 326, the statement establishes uniform measurement and examiner review requirements for loans, leases, debt securities, and off-balance-sheet exposures.
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