Temporary Relief Under CECL

Banking & Financial Institutions COVID-19 Resources

Section 4014 of the CARES Act affords insured depository institutions, bank holding companies, and their affiliates the option to temporarily delay measuring credit losses on financial instruments using the new Current Expected Credit Losses accounting standard (”CECL”).  Publicly traded bank holding companies that are large accelerated files were required to implement CECL effective January 1, 2020, while most other financial institutions will not be required to comply until 2023.  The CARES Act delays mandatory CECL compliance for large accelerated filers until the earlier of December 31, 2020, or the date on which the public emergency declaration related to coronavirus is terminated.