WASHINGTON—Legislators have sent a letter to the Federal Accounting Standards Board addressing FASB’s proposal related to the impairment of financial assets.
The letter, signed by 62 Congressional lawmakers and supported by NAFCU and CUNA, raises concerns about how FASB’s proposed current expected credit loss standard (CECL) could hurt credit unions and community banks.
The letter states that the proposed CECL would “comprehensively revise the way all lenders set aside reserved funds in anticipation of possible future credit losses. FASB must proceed with the utmost caution in finalizing the (accounting standards update) as it has the potential to irreversibly damage community banks’ and credit unions’ ability to continue to adequately serve their customers/members and communities and sustain the economic recovery.”
The full letter can be found in CUToday.info’s The Gov.