Budd Introduces Bill to Delay CECL Implementation
Washington, D.C. - U.S. Representative Ted Budd (R-NC) released the following statement after introducing H.R. 3182, a bill to delay the Current Expected Credit Loss, or CECL, accounting standards until the completion of a quantitative impact study:
“I never knew when I took office that the implementation of accounting standards would prove to be such an important issue, yet I’ve been pleased to see it provide so many opportunities for working across the aisle in this hyper-partisan era. The Financial Accounting Standards Board, or FASB, is moving forward with an accounting standard affecting generally every financial institution in the country and the customers they serve, without a proper study of its broader economic impact. To me, this is yet another example of an unaccountable bureaucracy not taking the appropriate steps to ensure that it is helping instead of hurting folks. I am particularly concerned about how this new accounting standard will impact lending in economic recessions and affect access to capital for the consumer in financial downturns. It is now up to us in Congress to make FASB complete this common sense task and that’s what my bipartisan bill would do if enacted.”
“I want to thank those who helped make this bill possible, everyone from Rep. Blaine Luetkemeyer (R-MO) to numerous colleagues on the other side of the aisle who have raised numerous concerns on CECL. But in particular, I want to thank President and CEO of the North Carolina Bankers Association Peter Gwaltney. He raised this issue for me back in the Fall of 2017, has been working on this for years now, and deserves much of the credit for making this bill even possible.”
“CECL affects a very broad part of our business sector who engage in lending, big and small,” Congressman Gonzalez said. “But those effects are not known, and they too could be big or small. My concern is that we have paid too much attention to the largest entities and not enough to the smallest, where a $10,000-dollar compliance bill just to learn whether you do or do not need to change your business plan, is just too much for some to absorb.”
View the bill here.