Hindsight is 20/20, but that’s not enough for CECL

Posted on August 31, 2018 at 2:00 PM by John Robertson

The current expected credit loss standard (CECL) will require financial institutions book loan loss allowances for the life of the loan at the time of origination, and—if that changes over time—an institution’s income can take a hit.

To accurately predict loss allowance, especially for loans with a longer lifecycle, banks and credit unions will need sufficient data for CECL implementation.

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Will the Relief Act offset CECL implementation costs and capital adjustments?

Posted on August 9, 2018 at 1:00 PM by John Robertson

As financial institutions analyze Current Expected Credit Loss standard (CECL) data requirements and begin to run various modeling scenarios in order to ascertain the impact to capital when adopted, some institutions could face substantial adjustments.

On the heels of preparing for the CECL accounting standard, the Economic Growth, Regulatory Relief, and Consumer Protection Act (Relief Act) was signed into law. It is considered as a long overdue partial rollback of the Dodd-Frank Act.

The Relief Act dilutes some of the stringent regulations imposed by the Dodd-Frank Act on the United States financial system, and it is primarily aimed at making things easier for small- and medium-sized U.S. banks. Many of these financial institutions were seen as being affected by the tougher rules in a disproportionate manner compared to their larger rivals.

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Are your processes positioning your financial institution for CECL compliance?

Posted on July 20, 2018 at 10:00 AM by John Robertson

CECL is changing the way financial institutions conduct business, so make sure your processes are putting you on the right path toward compliance.

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