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Credit unions' unique structure as member-owned, not-for-profit institutions was reiterated Thursday during a NAFCU-attended Financial Accounting Standards Board meeting where financial institution representatives, auditors and regulators shared their concerns over the board's current expected credit loss standard.

During the meeting, Susan Hannigan, senior vice president and CFO of Jeanne D'Arc Credit Union in Massachusetts, reminded FASB representatives that credit unions are unique and only serve members; they do not have investors. She also expressed concerns about the additional costs of compliance and the need for a standard that is simple and scalable to small institutions.

NAFCU Regulatory Affairs Counsel Alexander Monterrubio attended yesterday's meeting, where many voiced reservations with the standard and its impact due to the need to estimate expected credit losses. D. Scott Neat, director of supervision in NCUA's Office of Examination and Insurance, also attended.

The CECL standard is still in draft form; FASB is expected to make the standard final in mid-2016.

On Monday, NAFCU President and CEO Dan Berger urged FASB to reconsider CECL. He emphasized the need for any proposed credit-loss standard update to consider the unique structure of credit unions as member-owned, not-for-profit institutions. He stated NAFCU's belief that credit unions should not be subject to the proposed update as the costs for credit unions outweigh the benefits.