FASB recently rejected a proposal developed by regional banks and first discussed at the January 2019 CECL roundtable. While strongly embraced by midsize banks that put forth the proposal, the proposal received negative feedback from large banks that felt it was too late in the implementation process to introduce alternative models. Community banks and credit unions saw limited benefit and added complexity and cost from the proposed changes. Both large banks and smaller banks saw challenges in the proposal’s auditability.
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