The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers
I examine the effect of the change from incurred loss model to the current expected credit loss (CECL) model on mortgage lending. I find that the extent that the CECL model under ASC 326 exacerbates the lending disparities for low-income and minority (LIM) borrowers is dependent on banks' choic...
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Florida State University
2024
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ftfloridasu:oai:diginole.lib.fsu.edu:fsu_927854 2024-09-09T20:06:18+00:00 The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers Chappell, Moniquca (author) Keskek, Sami (professor directing dissertation) Cheng, Yingmei (university representative) Ehinger, Anne C. (committee member) Mauler, Landon M. (committee member) Florida State University (degree granting institution) College of Business (degree granting college) Department of Accounting (degree granting department) 2024 computer online resource 1 online resource (77 pages) application/pdf https://repository.lib.fsu.edu/islandora/object/fsu%3A927854/datastream/TN/view/Effects%20of%20Regulatory%20and%20Statutory%20Reliefs%20on%20CECL%20Adopting%20Banks%27%20Lending%20to%20Low-Income%20and%20Minority%20Borrowers.jpg English eng Florida State University fsu:927854 iid: Chappell_fsu_0071E_18541 https://repository.lib.fsu.edu/islandora/object/fsu%3A927854/datastream/TN/view/Effects%20of%20Regulatory%20and%20Statutory%20Reliefs%20on%20CECL%20Adopting%20Banks%27%20Lending%20to%20Low-Income%20and%20Minority%20Borrowers.jpg Accounting Text doctoral thesis 2024 ftfloridasu 2024-08-27T23:44:02Z I examine the effect of the change from incurred loss model to the current expected credit loss (CECL) model on mortgage lending. I find that the extent that the CECL model under ASC 326 exacerbates the lending disparities for low-income and minority (LIM) borrowers is dependent on banks' choice of relief. I find banks who opted for regulatory relief that defers CECL's effect on regulatory capital, but not net income, decreased lending to LIM borrowers in preparation for and after enactment of ASC 326. In contrast, banks who opted for statutory relief that defers CECL's effect on both regulatory capital and net income did not reduce lending to LIM borrowers. Banks who opted for no relief decreased lending to LIM borrowers after enactment of ASC 326. This study highlights how the choice of relief (regulatory, statutory or no relief), which is heavily influenced by investor pressure, can have real consequences for LIM borrowers. A Dissertation submitted to the Department of Accounting in partial fulfillment of the requirements for the degree of Doctor of Philosophy. February 29, 2024. Includes bibliographical references. Sami Keskek, Professor Directing Dissertation; Yingmei Cheng, University Representative; Anne Christine Ehinger, Committee Member; Landon M. Mauler, Committee Member. Doctoral or Postdoctoral Thesis sami Florida State University: DigiNole Commons |
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Florida State University: DigiNole Commons |
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English |
topic |
Accounting |
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Accounting The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers |
topic_facet |
Accounting |
description |
I examine the effect of the change from incurred loss model to the current expected credit loss (CECL) model on mortgage lending. I find that the extent that the CECL model under ASC 326 exacerbates the lending disparities for low-income and minority (LIM) borrowers is dependent on banks' choice of relief. I find banks who opted for regulatory relief that defers CECL's effect on regulatory capital, but not net income, decreased lending to LIM borrowers in preparation for and after enactment of ASC 326. In contrast, banks who opted for statutory relief that defers CECL's effect on both regulatory capital and net income did not reduce lending to LIM borrowers. Banks who opted for no relief decreased lending to LIM borrowers after enactment of ASC 326. This study highlights how the choice of relief (regulatory, statutory or no relief), which is heavily influenced by investor pressure, can have real consequences for LIM borrowers. A Dissertation submitted to the Department of Accounting in partial fulfillment of the requirements for the degree of Doctor of Philosophy. February 29, 2024. Includes bibliographical references. Sami Keskek, Professor Directing Dissertation; Yingmei Cheng, University Representative; Anne Christine Ehinger, Committee Member; Landon M. Mauler, Committee Member. |
author2 |
Chappell, Moniquca (author) Keskek, Sami (professor directing dissertation) Cheng, Yingmei (university representative) Ehinger, Anne C. (committee member) Mauler, Landon M. (committee member) Florida State University (degree granting institution) College of Business (degree granting college) Department of Accounting (degree granting department) |
format |
Doctoral or Postdoctoral Thesis |
title |
The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers |
title_short |
The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers |
title_full |
The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers |
title_fullStr |
The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers |
title_full_unstemmed |
The Effects of Regulatory and Statutory Reliefs on CECL Adopting Banks' Lending to Low-Income and Minority Borrowers |
title_sort |
effects of regulatory and statutory reliefs on cecl adopting banks' lending to low-income and minority borrowers |
publisher |
Florida State University |
publishDate |
2024 |
url |
https://repository.lib.fsu.edu/islandora/object/fsu%3A927854/datastream/TN/view/Effects%20of%20Regulatory%20and%20Statutory%20Reliefs%20on%20CECL%20Adopting%20Banks%27%20Lending%20to%20Low-Income%20and%20Minority%20Borrowers.jpg |
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sami |
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sami |
op_relation |
fsu:927854 iid: Chappell_fsu_0071E_18541 https://repository.lib.fsu.edu/islandora/object/fsu%3A927854/datastream/TN/view/Effects%20of%20Regulatory%20and%20Statutory%20Reliefs%20on%20CECL%20Adopting%20Banks%27%20Lending%20to%20Low-Income%20and%20Minority%20Borrowers.jpg |
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