With the Right Approach, CECL Implementation Could Mean Current Expected Credit Profit

With the Right Approach, CECL Implementation Could Mean Current Expected Credit Profit

From the moment it takes effect in 2020 and beyond, CECL will change how your financial institution operates. The new accounting standard, which requires you to calculate the expected loss over the life of each loan and set aside reserves to cover those losses at origination, will impact how your financial institution views and manages […]

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Hindsight is 20/20, but That’s Not Enough for CECL

Hindsight is 20/20, but That’s Not Enough for CECL

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 […]

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How Well Do You Know Your Loan Portfolio?

How Well Do You Know Your Loan Portfolio?

With a deeper understanding of their loan portfolios, financial institutions can minimize CECL’s impact on their income statement CECL implementation will require financial institutions to book loan loss allowances for the life of the loan at the time of origination, and if that changes over time a financial institution’s income can suffer. Starting in 2020, […]

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