As financial institutions analyze Current Expected Credit Loss standard (CECL) data requirements and begin to run various modeling scenarios in order to ascertain the impact to capital when adopted, some institutions could face substantial adjustments.
On the heels of preparing for the CECL accounting standard, the Economic Growth, Regulatory Relief, and Consumer Protection Act (Relief Act) was signed into law. It is considered as a long overdue partial rollback of the Dodd-Frank Act.
The Relief Act dilutes some of the stringent regulations imposed by the Dodd-Frank Act on the United States financial system, and it is primarily aimed at making things easier for small- and medium-sized U.S. banks. Many of these financial institutions were seen as being affected by the tougher rules in a disproportionate manner compared to their larger rivals.