As reported by CU Times, many financial institutions haven't yet formed internal committees to deal with the Financial Accounting Standards Board's new Current Expected Credit Loss rules. Credit unions have until 2021 to comply but can start doing so in 2019. The new CECL rules will require credit unions and other organizations to measure expected credit losses using historical experience, current conditions, and reasonable and supportable forecasts. The Financial Accounting Standards Board finalized the new rules regarding credit losses in June of 2016, fundamentally changing how credit unions, banks and other financial institutions calculate their loan loss reserves.
As expected at this point, the larger the institution the more likely it has begun to address CECL. The NCUA website has FAQs addressing what credit unions should know at this point.
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