Applicability: The Joint Statement is relevant to Federal Reserve-supervised institutions that are required to adopt CECL in 2020 in accordance with U.S. GAAP, regardless of asset size.
The Federal Reserve Board and the other federal banking agencies are issuing this joint statement to clarify the interaction between the Revised Transition of the Current Expected Credit Losses Methodology for Allowances interim final rule (CECL IFR) 1 and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 2 for purposes of regulatory capital requirements.
Reserve Banks are asked to distribute this letter to the Federal Reserve-supervised institutions in their districts, as well as to their supervisory and examination staff. Questions may be sent via the Board’s public website. 3
signed by
Michael S. Gibson
Director
Division of
Supervision and Regulation