SR 20-9:
Joint Statement on Interaction of the Regulatory Capital Rule: Revised Transition of the CECL Methodology for Allowances with Section 4014 of the Coronavirus Aid, Relief, and Economic Security Act
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
DIVISION OF
SUPERVISION AND REGULATION
March 31, 2020
TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK
Joint Statement on Interaction of the Regulatory Capital Rule: Revised Transition of the CECL Methodology for Allowances with Section 4014 of the Coronavirus Aid, Relief, and Economic Security Act
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
Notes:
- Interagency Press Release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200327a.htm Return to text.
- Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, section 4014, 134 Stat. 281 (March 27, 2020). Return to text.
- See http://www.federalreserve.gov/apps/contactus/feedback.aspx. Return to text.