Example embodiments disclosed herein relate to filter coefficient updating in time domain filtering. A method of processing an audio signal is disclosed. The method includes obtaining a predetermined number of target gains for a first portion of the audio signal by analyzing the first portion of the audio signal. Each of the target gains is corresponding to a linear subband of the audio signal. The method also includes determining a filter coefficients for time domain filtering the first portion of the audio signal so as to approximate a frequency response given by the target gains. The filter coefficients are determined by iteratively selecting at least one target gain from the target gains and updating the filter coefficient based on the selected at least one target gain. Corresponding system and computer program product for processing an audio signal are also disclosed.