Skip Header
U.S. flag

An official website of the United States government

Banker Resource Center


Accounting impacts all aspects of bank operations and requires recordkeeping systems that generate accurate and reliable information and reports needed to meet the needs of customers, shareholders, supervisory agencies, tax authorities, and courts of law. Information in this section focuses on regulations and supervisory guidance for estimating allowances for credit losses and the submission of financial and regulatory reports, and controls to ensure these processes are consistently applied.

Current Expected Credit Losses (CECL)

On June 16, 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Topic 326, Financial Instruments — Credit Losses (also known as the CECL methodology) which applies to all banks, savings associations, and financial institution holding companies. Early application of the new standard is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Until the new standard becomes effective, institutions should follow current U.S. generally accepted accounting principles (GAAP) along with the related supervisory guidance on the allowance for loan and lease losses (ALLL).
Learn More

Allowance for Loan and Lease Losses (ALLL)

The ALLL is a valuation allowance against total loans held for investment and lease financing receivables. It represents an amount considered to be appropriate to cover estimated credit losses in the current loan portfolio and its purpose is to absorb net charge-offs likely to be realized.
Learn More

Consolidated Reports of Condition and Income (Call Reports)

Each quarter, institutions submit Call Report data to the bank regulatory agencies for use in monitoring the condition, performance, and risk profile of individual institutions and the industry as a whole.
Learn More

Bank Securities

Some FDIC-supervised banks have equity securities that are registered with the FDIC under the Securities Exchange Act of 1934 (Exchange Act) and Part 335 of the FDIC’s regulations. Such registered banks are responsible for filing periodic reports, such as Forms 10-K, 10-Q, and 8-K, all other Exchange Act reports, and proxy solicitation materials (preliminary and final).
Learn More

Other Accounting Related Topics