Fed issues guidance on accounting for leased bank premises
Abstract: Most community banks are preparing for the Financial Accounting Standards Board’s new lease accounting standard’s impact on loan covenants and regulatory capital. But banks also need to consider its potential impact on investment in bank premises, such as office space and retail branch leases. This article explains when the new rules take effect, their impact on operating leases and the Regulation H implications. The article notes that investment timing can be significant.