Four governing bodies are responsible for the oversight of thousands of financial entities in the United States. These consist of:
- Office of the Comptroller of the Currency (OCC)
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve (FED)
- National Credit Union Administration (NCUA)
These regulatory bodies share several commonalities in their approach to governing financial institutions, yet each has its own discrete regulatory expectations.
The National Credit Union Administration, or NCUA, is responsible for oversight of both federal credit unions and FDIC-insured state-chartered credit unions.
The Federal Reserve, or FED, oversees bank holding companies, financial holding companies, S&L/thrift holding companies and state-chartered member banks of the Federal Reserve System.
The Federal Deposit Insurance Corporation, or FDIC, oversees FDIC-insured state-chartered non-member banks as well as FDIC-insured state-chartered thrifts.
The Office of the Comptroller of the Currency, or OCC, is largely viewed as holding its constituents to the strictest standards of the three bank governing bodies. It oversees national banks and federally chartered thrifts.
IASB’s IFRS 9
On July 24, 2014, the International Accounting Standards Board (IASB) issued its own standard for accounting for credit losses, IFRS 9 Financial Instruments. Under this model, financial institutions must account for expected credit losses when they are first recognized, as well as recognize expected losses over the life of the loan.