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2017 Press Releases
Florida and Arkansas Begin Using Uniform Mortgage Test; 54 State Agencies Now Using the Test
State Regulators Oppose OCC Special Charter For Non-Banks
State Financial Regulators Release BSA/AML Compliance Tool for Industry
CSBS Board Appoints Wyoming’s Albert Forkner as Chairman-Elect
State Regulators Promote “Fintech Friendly” Features of National Registry
College Students Participate in Nationwide Community Bank Competition
Statement on the Illinois Fintech Regulatory Roundtables
CSBS Urges Congress to Weigh in Against OCC Non-Bank Charter
State Regulators Highlight EGRPRA Priorities for Financial Regulatory Relief
Gonzales, Hughes and Jones Re-Appointed to FFIEC State Liaison Committee
State Regulators Announce Changes to Money Services Businesses Reporting
State Regulators Issue Cease-and-Desist Orders to Subsidiaries of Ocwen Financial Corp.
CSBS Files Complaint Against Comptroller of the Currency
Gonzales Elected as State Liaison Committee Chairman
Stork Appointed to FFIEC State Liaison Committee
CSBS Announces Vision 2020 for Fintech and Non-Bank Regulation
CSBS Statement on New York Department of Financial Services Lawsuit Against OCC
CSBS Announces Five Finalist Teams in the 2017 Bank Case Study Competition
CSBS Announces New Leadership
The University of Akron Wins First Place in CSBS Community Bank Competition
Fed Chair Yellen Will Open 2017 Fed/CSBS Community Banking Research Conference;
FFIEC Proposes Additional Revisions to Streamline “Call Report” for Small Institutions
State Regulators Call for an End to One-Size-Fits-All Bank Regulation
State Regulators and U.S. Secret Service Issue Industry Best Practices for Combating Cyber Crime
Louisiana Regulator to Guide Nationwide Licensing and Supervision System for Fintechs and Other Non-Banks
State Regulators Issue Annual Reports on Non-Bank Supervision
CSBS Launches Fintech Advisory Panel to Help Modernize State Regulation
CSBS to OCC: Fintech Charter Lacks Legal Authority
CSBS Names Kyle Thomas Vice President, Accreditation and Supervisory Processes
State Regulators File Suit Over Unauthorized Use of Licensing Test Information
Statement on Financial Innovation Symposium hosted by Western States Financial Regulators
2018 CSBS Case Study Competition to Focus on Financial Innovation
Federal and State Banking Agencies Issue Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Irma
State Regulators Launch Redesign for Next Generation Technology Platform; Core Component of CSBS Vision 2020
South Carolina Begins Using Uniform Mortgage Test; 57 State Agencies Now Using the Test
CSBS Develops Tool to Help Financial Institutions Prepare for New Accounting Standards
CSBS Releases Annual Report
Statement by CSBS President and CEO John W. Ryan on The State Regulatory Representation Clarification Act
Federal Reserve and CSBS Release Findings from 2017 National Survey of Community Banks
CSBS Announces Fintech Advisory Panel Members
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 9/28/2017 

Media Release

Conference of State Bank Supervisors
        1129 20th Street, NW, 9th Floor, Washington, DC, 20036

 CSBS Develops Tool to Help Financial Institutions Prepare for New Accounting Standards  

Washington, D.C. – The Conference of State Bank Supervisors (CSBS) released an optional tool today to help financial institutions prepare for new accounting standards changing how banks calculate credit losses.

The tool, known as the Current Expected Credit Losses (CECL) Readiness Tool, provides one possible path for financial institutions to use while preparing for the Financial Accounting Standard Board's (FASB) new accounting rules.

CSBS President and CEO John W. Ryan: "As financial institutions prepare for FASB's new accounting update, state regulators have heard community banks express a clear need: a set of steps to help them prepare. The steps laid out in this tool provide one possible path that a financial institution's management team can take to prepare for these changes."

Information about the CECL Readiness Tool:

  • The tool was developed to provide a framework that a financial institution could use to plan for the eventual implementation of these accounting changes.
  • At its core, the tool encourages early research, data maintenance, and communication amongst members of a financial institution’s management team.
  • There is no regulatory expectation that this tool be used. It is simply offered as an optional resource to plan and prepare for the implementation of CECL. The suggested dates in the tool are suggestions only and are not regulatory expectations or deadlines.
  • The tool does not replace or revise any agency guidance related to CECL, nor should it replace advice your institution may receive from your auditor or accounting experts.

Background:

  • Using current Generally Accepted Accounting Principles, an institution is restricted in its ability to record credit losses that are expected, but do not meet the threshold of "probable." Some institutions and stakeholders asked FASB to enhance standards on loan-loss provisioning to incorporate forward-looking data.
  • In response, the Financial Accounting Standards Board's (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326) commonly referred to as the Current Expected Credit Losses (CECL) method on June 16, 2016.
  • Under the new CECL model, financial institutions will be required to use historical information, current conditions and reasonable forecasts to estimate the expected loss over the life of the loan.
  • CECL will have a significant impact on the way a financial institution estimates and provides for credit losses. It is prudent for institutions to start planning as soon as possible in order to adopt CECL in an orderly manner.
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