Credit unions could finally get clarification this week on the new current expected credit loss standard.
The Financial Accounting Standards Board had scheduled CECL implementation for Jan. 1, 2022, but FASB is expected to discuss postponing that date for credit unions and other small institutions during a meeting scheduled for Wednesday. The proposed rule has been a controversial one, since it will upend how credit unions square their books, requiring them to shift from a credit loss history toward a forecasting model. If FASB votes to delay, credit unions won’t be subject to the rule until Jan. 1, 2023, though many experts have
The National Credit Union Administration will hold its monthly open board meeting on Thursday, with the panel expected to finalize two proposed rules on fidelity bonds and real estate appraisals for non-residential loans. According to the National Association of Federally-Insured Credit Unions, fidelity bonds insure CUs against losses caused by fraud, dishonesty, theft and other activities by employees, directors, officers and supervisors.
The Credit Union National Association expressed concerns in advance of the meeting with NCUA’s “assertion that requiring a mandatory option to extend the discovery period will not result in additional costs for credit unions,” CUNA’s Luke Martone, who serves as senior director of advocacy & counsel, said via e-mail.
Martone explained that state regulations cap the amount of fees that can be charged with an extension, so insurers accounting for the difference by upping a CU’s premium is a likely scenario.
CUNA is also concerned with the possibility that NCUA could evade “rescission challenges by insurance companies by mandating that board members, rather than management, sign fidelity bond applications,” added Martone.
NCUA will also consider its mid-session budget for 2019 during the board meeting.
Discussions continue in Congress this week surrounding the National Defense Authorization Act. Committees in the both chambers have advanced different versions of the legislation which, among other things, would clarify whether banks will have the same access to military installations as credit unions. Industry trade groups are hoping to
Lawmakers will continue their examination of Facebook’s attempts to enter the cryptocurrency arena. The Senate Banking Committee this week will hold a hearing on Tuesday regarding Libra, the social media giant’s proposed digital currency, focusing on privacy considerations. The House Financial Services Committee will conduct its own hearing on Wednesday. The committee is expected to mark up 15 bills over the course of the week.
Lastly, today is the start of Amazon’s fifth annual Prime Day, and credit unions are using the opportunity as an event to push their credit and debit cards top of wallet. The industry has historically seen increased transaction volumes on Prime Day, and with the event expanded this year for the first time ever, those numbers are widely
