The $2 trillion crisis aid package deal now headed to President Trump’s desk provides big banking companies a momentary reprieve from a big improve in lender accounting requirements, marking a unusual intervention by Congress in what is usually the domain of the Monetary Accounting Specifications Board.
Large publicly-traded banking companies ended up meant to undertake the present anticipated credit history losses (CECL) accounting typical on Jan. 1. But the CARES Act handed by the Dwelling on Friday provides them till Dec. 31 — or when the coronavirus national crisis ends, whichever arrives very first — to overhaul how they account for losses on souring financial loans.
The January 2023 deadline for privately held banking companies, credit history unions, and smaller sized public corporations to comply continues to be in place.
The CECL hold off was integrated in the bill around the objections of Kathleen Casey, chair of the Monetary Accounting