Regulatory Alerts2020-03-31
Added · Updated
SR 20-9: Joint Statement on Interaction of the Regulatory Capital Rule Revised Transition of the CECL Methodology for Allowances with Section 4014 of the CARES Act
The Federal Reserve Board and other federal banking agencies issued a joint statement to clarify the interaction between the CECL interim final rule and Section 4014 of the CARES Act for regulatory capital purposes. This guidance applies to all Federal Reserve-supervised institutions required to adopt the Current Expected Credit Losses methodology in 2020 under U.S. GAAP, regardless of asset size. The agencies direct Reserve Banks to distribute the statement to supervised institutions and supervisory staff to ensure consistent implementation of these capital requirements.