Bloomberg reported that banks’ loan-loss reserves may jump about 50% under a proposed U.S. accounting-rule change that redefines how quickly firms must recognize bad debts.

The article quoted Leslie Seidman, chairman of the Financial Accounting Standards Board, as saying, “Speaking with many of the larger financial institutions in the U.S., they’ve told us — again without the rigor of a complete adoption of the proposal — that they’re estimating that their losses might increase in the range of let’s say 50%.”

To read the full Bloomberg article click here.

To read FASB’s news release click here.