FARM CREDIT ADMINISTRATION ISSUES RULE: LOAN PERFORMANCE CATEGORIES AND FINANCIAL REPORTING

WASHINGTON, Aug. 26 -- Farm Credit Administration has issued a rule called: Loan Performance Categories and Financial Reporting.

The rule was published in the Federal Register on Aug. 26 by Ashley Waldron, Secretary to the Board, Farm Credit Administration.

Summary: The Farm Credit Administration (FCA, we, or our) amends our regulatory high-risk loan performance categories by removing "Formally restructured loans (TDR), " also known as troubled debt restructurings. In 2022, changes in generally accepted accounting principles (GAAP) eliminated the accounting guidance for TDRs, enhanced disclosure requirements for certain loan refinancings and restructurings undertaken when a borrower is experiencing financial difficulty and changed existin...