WASHINGTON (Reuters) - The U.S. Federal Reserve on Friday proposed revising bank regulatory capital rules to ease the impact of new international accounting standards for credit losses.

FILE PHOTO: The Federal Reserve headquarters in Washington September 16 2015. REUTERS/Kevin Lamarque/File Photo

In June 2016, the Financial Accounting Standards Board issued a new accounting standard for credit losses which is effective for some firms as early as January 2019 and is expected to dent firms’ balance sheets.

The Fed has proposed changing its regulatory capital treatment of credit loss allowances under the new standard and would also allow banks to phase in the effects of adopting the new standard over three years.

Reporting by Michelle Price; Editing by Chizu Nomiyama

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