By Amanda Rousseau, Sageworks
The Financial Accounting Standards Board recently introduced a proposal to allow calendar year-end non-public business entities to report reserve levels in accordance with the new current expected credit loss standard on Mar. 31, 2022, instead of the initial reporting date of Dec. 31, 2021. This was initially discussed in a regulatory meeting in June and the relief period was further solidified in a board meeting last week.
Filing regulatory reports can stretch an already tight pool of employees, but QuantaVerse thinks it’s Financial Crime Report can save banks time by automatically compiling information relevant for filing suspicious activity reports. The solution leverages artificial intelligence to include content related to FinCEN’s newly recommended fields and categories such as geographic targeting orders, IP address date/timestamping and new/modified subtypes selections associated with structuring, fraud, money laundering, gaming, identification/documentation, securities and mortgage fraud.
Community and regional banks will face a distinct set of challenges in implementing the new Current Expected Credit Loss accounting standards. Resource restraints (both financial and personnel) aside, there is often a lack of historical default and loss experience data — particularly if the bank has recently experienced a merger or acquisition. Smaller sized institutions may also need support in achieving key goals such as ensuring their risk ratings reflect the expected credit loss of a loan over its contractual life, developing methodologies for converting annual net charge-offs into forward-looking measures of lifetime credit losses, and identifying a reasonable and supportable economic forecast.
How financial institutions are affected by the EU’s General Data Protection Regulation.
By Keith Monson
While community banks specialize in serving their local community, the reach of global regulations can still have a significant impact on a bank’s business plan.
The European Union’s General Data Protection Regulation took effect on May 25, and although it isn’t a U.S.-based regulation, it is important for banks to understand how the scope of GDPR will change usual business functionality. The law will be one of the more significant regulations to hit financial institutions in quite some time, bringing changes for them as well as all other businesses — and their customers.
August 1 — With the deadline looming, tips for CECL prep are coming from all sides. Having trouble sorting through it all? Here are some practical tips to keep your institution on track.