Message from John Epperson, Managing Principal, Financial Services
Dear FIEB readers,
I hope you enjoyed the Fourth of July holiday and that your summer includes time for some rest and relaxation.
This month brought more from the regulators on risk management and digital assets. The federal banking agencies issued a proposal on third-party risk management, and the Basel Committee issued a consultative paper on crypto asset exposures. Strong interest continues in environmental, social, and governance (ESG) disclosures, with a focus on climate change. In addition to various SEC speeches, internationally, the Financial Stability Board (FSB) issued its road map for addressing climate-related financial risks.
On the current expected credit losses (CECL) front, the FASB added two important projects to its technical agenda – one to address troubled debt restructuring (TDR) accounting and one to address purchased credit deteriorated (PCD) accounting. It also decided to proceed with its existing project on vintage disclosure: gross write-offs and gross recoveries.
Over the past few weeks, I have had the pleasure of attending a few in-person meetings and my first in-person conference in well over 15 months. It was wonderful to experience a sense of moving to our next normal. Let’s hope that trend continues. I’m excited about the possibility of seeing more of you in person soon.