BIS Survey: Premature to Assess CECL Procyclicality
Reflecting the ongoing importance of new expected-loss provisioning requirements, the BIS has released a literature survey assessing the extent to which the new loan-loss reserve methodology exacerbates procyclicality not on its own, but in contrast to the prior, incurred-loss approach.

Congress Investigating Fintechs, Partner Banks for PPP Fraud
In stark contrast to the praise heaped on fintechs by the FRB-NY yesterday, the Select Subcommittee on the Coronavirus Crisis today announced that it is investigating fintechs and partner banks for any role facilitating PPP fraud.

Fed Proposes PSR Rewrite as Broader Payment Changes Loom
The FRB today proposed changes to its Policy on Payment System Risk (PSR) to expand access to collateralized intraday credit.

Daily052821.pdf