Interagency Policy Statement on Allowance for Loan and Lease Losses

CUNA
January 10, 2007

NCUA and the other federal financial regulators (Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and Office of Thrift Supervision) have issued a new Interagency Policy Statement on the Allowance for Loan and Lease Losses (ALLL). This new Statement revises and replaces the 1993 Statement which did not apply to credit unions; the guidance is now extended to credit unions and NCUA examiners. Supplemental Frequently Asked Questions (FAQs) were also issued to assist institutions in complying with ALLL supervisory guidance and generally accepted accounting principles (GAAP). For credit unions, supervisory guidance includes NCUA’s Interpretive Ruling and Policy Statement (IRPS) 02-3, Allowance for Loan and Lease Losses Methodologies and Documentation for Federally-Insured Credit Unions. CUNA’s analysis of the IRPS, which contains a link to the IRPS, is available at the link below:
NCUA and the other federal financial regulators (Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and Office of Thrift Supervision) have issued a new Interagency Policy Statement on the Allowance for Loan and Lease Losses (ALLL). This new Statement revises and replaces the 1993 Statement which did not apply to credit unions; the guidance is now extended to credit unions and NCUA examiners. Supplemental Frequently Asked Questions (FAQs) were also issued to assist institutions in complying with ALLL supervisory guidance and generally accepted accounting principles (GAAP). For credit unions, supervisory guidance includes NCUA’s Interpretive Ruling and Policy Statement (IRPS) 02-3, Allowance for Loan and Lease Losses Methodologies and Documentation for Federally-Insured Credit Unions. CUNA’s analysis of the IRPS, which contains a link to the IRPS, is available at the link below:
http://www.cuna.org/reg_advocacy/member/analysis/ncua_052302.html

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