Where should credit unions report overdraft protection program advances (also referred to as bounced-check protection and courtesy pay)?
• Under “All Other Unsecured Loans/Lines of Credit”. According to FFIEC guidance, when overdrafts are paid by the credit union, credit is extended. Overdraft balances should be reported on regulatory reports as loans. Accordingly, overdraft losses should be charged off against the allowance for loan and lease losses.
Related Questions
- Where should credit unions report overdraft protection program advances (also referred to as bounced-check protection and courtesy pay)?
- WHY DOES THE REPORT USE BANKER RHETORIC IN DESCRIBING CREDIT UNIONS, RATHER THAN CONGRESS’ FIVE-POINT DEFINITION?
- Where can I find a status report on credit unions affected by Hurricane Katrina?
