Key facts
- Federal Reserve Vice Chair for Supervision Michelle Bowman has criticized the Current Expected Credit Losses (CECL) accounting standard.
- Bowman stated the standard is failing to meet expectations during a Financial Accounting Standards Board roundtable in May.
- Her position suggests regulators might push for more extensive reforms than bankers desire.
Federal Reserve Vice Chair for Supervision Michelle Bowman has voiced strong criticism of the Current Expected Credit Losses (CECL) accounting standard, suggesting it requires substantial reform. During a roundtable hosted by the Financial Accounting Standards Board in May, Bowman reportedly stated that the standard is not meeting expectations. Her remarks suggest that regulators may be inclined to pursue more significant changes to the loan loss accounting rules than the banking industry itself is seeking.