Curry Urges Support for Accounting Change for U.S. Banks’ Loans
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U.S. Comptroller of the Currency Thomas Curry said a proposed change to the way banks set aside reserves for bad loans is an “important step.”
Curry said he supports a plan by the Financial Accounting Standards Board that would require banks to set aside more reserves earlier for bad loans when “reasonable and supportable forecasts” estimate a shortfall for a loan. Curry and other bank regulators have warned banks not to reduce loan-loss reserves to show higher profits.