CECL results and reality

Posted on April 20, 2018 at 2:00 PM by John Robertson

To the extent of what they can, financial institutions have been processing the requirement demands being cast upon them with the new “Current Expected Credit Loss” (CECL) standard to be implemented. Through a process assessment, most institutions have slowly started to form a picture/plan of how to satisfy the requirements. The 2006 Interagency Policy Statement notes, “The loan loss allowance should take into consideration all available information existing as of the financial statement date, including environmental factors such as industry, geographical, economic, and political factors.”

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Pricing and profitability – the other side of CECL

Posted on March 23, 2018 at 12:31 PM by Mike Horrocks

It is extremely hard not to run into a Current Expected Credit Loss (CECL) article, webinar or whitepaper these days!  This new FASB standard has a lot of financial institutions looking for answers and consultants anywhere they can find them, and some institutions do seem a bit overwhelmed—and rightfully so.  Back in 2015, Deloitte conducted a survey of hundreds of U.S.-based banks and asked them about concerns around CECL.  Concerns that made it to the top included:

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Keeping up with CECL

Posted on February 9, 2018 at 4:00 PM by John Robertson

There have been continual conversations within the financial institution industry as how to best prepare for the upcoming regulatory changes required by CECL (Current Expected Credit Losses). While various methodologies are being considered, the Expected Loss or PD/LGD approach has been discussed in many of those evaluations.

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