A bipartisan group of House lawmakers—led by Reps. Ted Budd (R-N.C.) and Vicente Gonzalez (D-Texas)—this week introduced H.R. 3182, a bill calling for a halt to the implementation of the current expected credit loss standard until a quantitative impact study can be completed. A companion bill was previously introduced in the Senate by Sen. Thom Tillis (R-N.C.).
ABA has long raised concerns about the procyclical effects of the CECL standard, and ABA President and CEO Rob Nichols welcomed the bill’s introduction. “A rigorous study conducted by regulators is needed to assess the effect this new standard will have on the ability of financial institutions to serve their customers and support the broader economy, particularly when the economy is under stress,” Nichols said. “We urge Congress to quickly consider this bill.” Read more.