Accounting methods

Dear Congress: Leave accounting standards to FASB


Lawmakers recently introduced legislation to delay implementation of a new accounting standard for current expected loan losses. But policymakers should seek to preserve the accounting body’s independence.


'One less Cordray disciple in the Swamp': Comments of the week


Readers weigh in on the role of the Financial Accounting Standards Board, consider personnel changes at the Consumer Financial Protection Bureau, debate the viability of public banks and more.


Slamming FASB misses the point


Banking officials can reasonably disagree on new standards for current expected credit losses, but the accounting body developed the rules over many years and based them on extensive feedback.


FASB’s accountability problem


The standards board has been granted vast authority without having to answer to policymakers, and its latest accounting method, CECL, will be a disaster for small banks.


Community banks still aren’t ready for CECL


Despite recent chatter about a delay, there’s reason to believe the Current Expected Credit Losses accounting standard will go into effect next year. Regulators should do more to help smaller institutions prepare.


Shorter terms, higher rates: How CECL could upend lending


Bankers weigh their options in mortgage and CRE lending as implementation of a new accounting standard nears.


Accounting standards shouldn’t be left to the accountants


The SEC and FASB control the process now, but Congress should give banking regulators a more central role in overseeing the creation of accounting rules.


Something’s missing from the debate over CECL


Many community banks lack the historical loss data they need to adopt the new accounting standard, which raises questions about the model’s efficacy for these institutions.


Texas bank is punching above its weight class with latest acquisition


Veritex will take advantage of accounting rules in its deal for Green Bancorp, a larger bank with lingering energy exposure.


CECL compliance dragging small banks toward automation


Despite impending data requirements, many small banks are still struggling with automating loan risk calculations.