WASHINGTON, D.C. – Today, Congressman Blaine Luetkemeyer (R-MO), Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions introduced the Coronavirus Accounting Relief Act. This legislation would prohibit financial regulators from requiring compliance with the Current Expected Credit Loss (CECL) accounting standard for six months for any entity impacted by the coronavirus.

“Delaying the implementation of CECL would free up billions of dollars for financial institutions to lend to the small businesses and consumers who have been affected by the spread of the coronavirus and need assistance most right now,” said Congressman Luetkemeyer.

“The ill-advised CECL accounting standard forces institutions to increase credit losses and decrease lending during a downturn -- the most inopportune time possible. Its delay will give institutions more time to understand the real implications of CECL and the procyclicality of the standard. CECL has the potential to make an already precarious economic situation worse and delaying it will allow banks to serve the Americans who have been hit hardest by coronavirus, particularly low-to-moderate income consumers.”

Click HERE for bill text.