With the right approach, CECL implementation could mean current expected credit profit

Posted on October 17, 2018 at 10:00 AM by Baker Hill

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 risk.

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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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How well do you know your loan portfolio?

Posted on August 24, 2018 at 2:45 PM by Baker Hill

With a deeper understanding of their loan portfolios, financial institutions can minimize CECL’s impact on their income statement

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