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Financial Institution Letters

April 17, 2018

Regulatory Capital Rule:

Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rules and Conforming Amendments to Other Regulations

Printable Format:

FIL-20-2018 - PDF (PDF Help)


The federal banking agencies are jointly issuing the attached Notice of Proposed Rulemaking to amend their capital rules in response to forthcoming changes to U.S. generally accepted accounting principles set forth in Accounting Standards Update No. 2016-13, Topic 326, Financial Instruments—Credit Losses (ASU 2016-13). ASU 2016-13 introduces the current expected credit losses methodology (CECL).

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter (FIL) is applicable to all institutions. An estimation tool is available to help community banking organizations evaluate the potential impact of the proposal on their regulatory capital ratios, this resource is available at


The Proposed Rule would:

National Call:


Suggested Routing:

Related Topics:




FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at

To receive FILs electronically, please visit

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).