Three federal bank regulatory agencies – the FRB, FDIC, and OCC – today announced two COVID-19 related actions to support the U.S. economy and allow banking organizations to continue to lending to households and businesses:
- Allow early adoption of the “standardized approach for measuring counterparty credit risk,” or “SA-CCR,” which is a new way for banking organizations to measure counterparty credit risk, in pertinent part, from derivatives; and
- Provide certain banks with an additional two years to transition to the new “current expected credit loss,” or “CECL,” an accounting standard that is used for purposes of determining how much regulatory capital a bank has to set aside.
This blog post provides additional information about these announcements.Continue Reading Bank Regulators Announce Actions to Support Economy