The Independent Community Bankers of America and the Credit Union National Association sent a joint letter to the Financial Accounting Standards Board urging changes to a proposal to alter how financial institutions establish reserves for loan losses.

FASB should make significant concessions to financial institutions' concerns with the proposed Current Expected Credit Loss model for loan-loss reserves, also known as CECL, the groups said in a letter to FASB Chairman Russell Golden. Backers of the proposal, which would require financial institutions to set aside reserves when a loan is made instead of waiting for the likelihood of default, believe it would help prevent institutions from being under-reserved in the event of a new financial crisis.

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