Allowances for Credit Losses: Revised Comptroller’s Handbook Booklet and Rescissions

OCC Bulletin 2026-33

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July 16, 2026

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To
Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) issued today version 2.0 of the “Allowances for Credit Losses” booklet of the Comptroller’s Handbook . The booklet provides information for examiners regarding allowances for credit losses (ACL) under Accounting Standards Codification (ASC) Topic 326, “Financial Instruments—Credit Losses.”

Rescissions

The following are rescinded with the issuance of this booklet:

Version 1.0 of the “Allowances for Credit Losses” booklet of the Comptroller’s Handbook .

OCC Bulletin 2021-20, “Allowances for Credit Losses: New Comptroller’s Handbook Booklet,” which transmitted version 1.0 of this booklet.

The “Allowance for Loan and Lease Losses” booklet of the Comptroller’s Handbook .

The July 1996 cover letter that transmitted the “Allowance for Loan and Lease Losses” booklet.

Note for Community Banks

This booklet provides information to inform and educate examiners about ACLs in banks 1 of all sizes with emphasis on ranges of practices for varying sizes, complexities, and risk profiles. Examiners determine which expanded procedures to use, if any, based on risk.

Highlights

The revised booklet

reflects that the adoption date of the current expected credit losses methodology under ASC Topic 326 has passed for all banks.

reflects the April 2023 revisions to the “Interagency Policy Statement on Allowances for Credit Losses.”

reflects changes that have occurred since April 2021, such as amendments to U.S. generally accepted accounting principles, new and rescinded OCC and interagency issuances, changes in regulations, and changes in the OCC’s organizational structure.

includes other updates for general clarity or context.

Background

The
Comptroller’s Handbook is designed to

inform and educate examiners about the subject matter reviewed—including associated risks and appropriate risk management practices.

guide examiners in performing consistent, high-quality, professional bank supervision across the spectrum of OCC-supervised banks.

provide examiners with the information necessary to plan and coordinate examinations, identify concerns, and conduct appropriate follow-up.

This booklet is designed for use by examiners and is made available to the public to provide transparency into the OCC’s supervisory process. Refer to the “Foreword” booklet of the Comptroller’s Handbook for more information about the Comptroller’s Handbook generally.

Further Information

Please contact the Credit Risk Division at (202) 649-6220 or the Office of the Chief Accountant at (202) 649-6280.

James M. Gallagher
Senior Deputy Comptroller and Chief National Bank Examiner

Related Link

“
Allowances for Credit Losses
”

1
“Banks” refers collectively to national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.

Topic(s):

Accounting

Allowance for Loan & Lease Losses (ALLL) Accounting

Allowances for Credit Losses

Credit Administration

Current Expected Credit Losses (CECL) Methodology