KBRA Releases The Bank Treasury Newsletter

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases this month’s edition of the newsletter, Bank Treasurers, CECL, and the Texas Ratio, which reviews many of the underappreciated aspects of the new accounting rule that will upend the traditional incurred loss model and throw open to question some of the strategic approaches by banks in lending segments that are structurally not CECL-friendly. CECL is assumption and model-intensive, and as the newsletter argues, adds more complexity for both preparers and users of financial statements to gather and interpret information about asset quality.

The LIBOR-SOFR transition, scheduled for January 1, 2022, is another topic this month. Bank treasurers without a lot of exposure to LIBOR-SOFR in their loan books, may want to review their floating rate investment securities portfolio that could be tied to LIBOR. Finally, the newsletter reviews proposals by the FDIC to reduce the complexity of rules governing the national rate cap and brokered deposits, to modernize regulations that have not been amended since 1991.

To view the report, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:
Ethan M. Heisler, CFA, Senior Director
(516) 359-0975
eheisler@kbra.com

Business Development Contact:
Dave DeMilt, Managing Director
(646) 731-3335
ddemilt@kbra.com

Contacts

Analytical Contacts:
Ethan M. Heisler, CFA, Senior Director
(516) 359-0975
eheisler@kbra.com

Business Development Contact:
Dave DeMilt, Managing Director
(646) 731-3335
ddemilt@kbra.com