Allowances for Credit Losses: Revised Comptroller’s Handbook Booklet and Rescissions
July 16, 2026 / Source: OCC
OCC Bulletin 2026-33|July 16, 2026
Summary
The Office of the Comptroller of the Currency (OCC) issued today version 2.0 of the “Allowances for Credit Losses” booklet of the Comptroller’s Handbook. The booklet provides information for examiners regarding allowances for credit losses (ACL) under Accounting Standards Codification (ASC) Topic 326, “Financial Instruments—Credit Losses.”
Rescissions
The following are rescinded with the issuance of this booklet:
- Version 1.0 of the “Allowances for Credit Losses” booklet of the Comptroller’s Handbook.
- OCC Bulletin 2021-20, “Allowances for Credit Losses: New Comptroller’s Handbook Booklet,” which transmitted version 1.0 of this booklet.
- The “Allowance for Loan and Lease Losses” booklet of the Comptroller’s Handbook.
- The July 1996 cover letter that transmitted the “Allowance for Loan and Lease Losses” booklet.
Note for Community Banks
This booklet provides information to inform and educate examiners about ACLs in banks1 of all sizes with emphasis on ranges of practices for varying sizes, complexities, and risk profiles. Examiners determine which expanded procedures to use, if any, based on risk.
Highlights
The revised booklet
- reflects that the adoption date of the current expected credit losses methodology under ASC Topic 326 has passed for all banks.
- reflects the April 2023 revisions to the “Interagency Policy Statement on Allowances for Credit Losses.”
- reflects changes that have occurred since April 2021, such as amendments to U.S. generally accepted accounting principles, new and rescinded OCC and interagency issuances, changes in regulations, and changes in the OCC’s organizational structure.
- includes other updates for general clarity or context.
Background
The Comptroller’s Handbook is designed to
- inform and educate examiners about the subject matter reviewed—including associated risks and appropriate risk management practices.
- guide examiners in performing consistent, high-quality, professional bank supervision across the spectrum of OCC-supervised banks.
- provide examiners with the information necessary to plan and coordinate examinations, identify concerns, and conduct appropriate follow-up.
This booklet is designed for use by examiners and is made available to the public to provide transparency into the OCC’s supervisory process. Refer to the “Foreword” booklet of the Comptroller’s Handbook for more information about the Comptroller’s Handbook generally.
Further Information
Please contact the Credit Risk Division at (202) 649-6220 or the Office of the Chief Accountant at (202) 649-6280.
James M. Gallagher
Senior Deputy Comptroller and Chief National Bank Examiner