On October 17, 2019, the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and National Credit Union Administration released for public comment a proposed interagency policy statement on allowances for credit losses (“ACLs”).  The proposed policy statement reflects the Financial Accounting Standards Board’s adoption of the current expected credit losses (“CECL”) methodology.

Continue Reading Agencies Propose CECL Policy Statement

Over the past few years, banks have been forced to devote more resources to compliance and compliance personnel as the regulatory burdens on financial institutions have increased.  For large financial institutions, this generally means hiring additional compliance staff.  In 2014, The Wall Street Journal tagged compliance officers with the “the hottest job in America.”

But, many smaller banks do not have the resources or need for a full-time compliance officer.  According to Bank Director’s 2015 Risk Practices Survey, 29% of banks with less than $1 billion in assets did not have a chief risk or chief compliance officer compared to only 8% of banks with $1 billion to $5 billion in assets.  Some smaller banks have adopted or are exploring a creative solution: sharing a compliance officer.
Continue Reading Community Banks Share Compliance Officers