Mind the Gaap: US banks brace for $50–100bn capital hit

Platform step — Step into the unknown: banks are still evaluating the impact of Cecl

Steve Marlin
10 Aug 2016

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Some are calling it the most significant accounting change for the banking industry in over four decades.

The Current Expected Credit Loss (Cecl) rule, which was finalised by the US Financial Accounting Standards Board (FASB) on June 16, will require banks to immediately set aside the full amount of expected credit losses over the lifetime of a loan once it is originated. Currently, credit losses are only recognised in financial statements at the point of impairment.

"Cecl has changed the

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