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The CARES Act and an interim final rule by bank regulators provided conflicting guidance on CECL implentation, prompting federal bank regulators to issue another joint statement clarifying the rule.

According to the statement, banks subject this year to the new current expected credit loss accounting standard can choose to delay implementation using either the regulators’ interim final rule or the statutory guidance included in the CARES Act, the federal aid package issued in response to the coronavirus crisis. Both guidelines were issued on March 27.

According to the CARES Act, banks that became subject to the new CECL standard this year can delay CECL compliance until the earlier of the termination date of the current coronavirus national emergency or Dec. 31.

The interim final rule issued by the FDIC, the Federal Reserve and the OCC delayed the estimated impact on regulatory capital stemming from the new accounting standard for a transition period of up to five years. The original transition period was three years.

After the CARES Act relief expires, banks can also then elect the regulatory capital relief provided by the regulators’ interim final rule.