CECL could force Capital One’s loss reserves up 40%

Capital One projects its credit loss reserves will have to increase by up to $3 billion once new accounting standards take effect in 2020.

Allowances for loan and lease losses for Q3 2019 at the US bank hit $7 billion, compared with $7.1 billion in Q2 and $7.2 billion in the year-ago quarter. Its current ratio of allowances to outstanding loans is 2.82%.


A 40% increase on Q3 levels could mean allowances as of January 1, 2020 would have to increase to about $9.9 billion.

The move to the

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