OCC 'disappointed' at lack of accounting convergence

With US and international loan-loss accounting rules set to diverge, bank regulators are preparing to level up the resulting capital differences

US bank regulators have expressed disappointment at the failure of accounting standard-setters to close the gap between US and international accounting frameworks – one consequence of which could be higher loss reserves at US banks, and the need for regulators to even up a resulting disparity in capital.

"The OCC is disappointed that standard setters have been unable to achieve full convergence at this juncture, particularly on accounting for financial instruments. We understand the challenges