NCUA Adopts CECL Final Rule

Many financial institutions adopted the current expected credit losses (CECL) accounting standard over a year ago, but the deadline for smaller public and nonpublic entities, such as credit unions, was phased to begin later.

Federally insured credit unions (FICU) now are required to apply the CECL standard for fiscal years beginning after December 15, 2022.

On July 1, 2021, the National Credit Union Administration (NCUA) published a final rule on the “Transition to the Current Expected Credit Loss Methodology,” establishing a deadline by which FICUs must move toward the CECL model.