It is important for financial institutions to understand what is required by CECL guidance and to plan what their organization should be doing this year to prepare. This bundle of informational resources will help with the transition.
For financial institutions that are implementing CECL or still adjusting their model, a tested plan for CECL adoption can help align resources and expectations. With so much on your plates, executives and other staff in charge of the CECL transition can ensure a smooth transition by charting the course carefully. We can help.
Use this updated guide to see the effective dates, example timelines, and tips for forming and implementation committee.
Make sure your CECL implementation plan is documented and supported by following these 5 straightforward steps.
As you work to identify and gather relevant loan-level data and select a methodology for CECL, you might encounter roadblocks. Financial institutions should work on loan-level data collection as a first step toward being compliant. Learn how to improve data quality, ensure data adequacy, and validate your model.
Gathering data is one of the key first steps in CECL preparation. Use this checklist to learn the basics of CECL data requirements, data characteristics, and data points by methodology.
Make sure you have the right tools in place to be successful. Review some of the questions your institution should ask when considering vendors for building or partnering. Use this guide to make an informed decision on key criteria to consider.
DownloadThe Bank of San Antonio had relied on Excel to calculate its ALLL, but it wasn’t enough as their bank was growing quickly. By automating their ALLL and stress testing, the Bank of San Antonio captured and stored its loan data nightly and easily transitioned to CECL.
View success storyOn June 16, 2016, the FASB issued the new guidance for the CECL model. Access the full accounting standard.
Read it hereRead the FASB news release on the new standard, and access FASB resources.
Read it hereRead why the FASB in 2019 agreed to give certain companies additional time to implement CECL.
Read it here
Get the flexibility that you need for CECL compliance and developing reasonable and supportable forecasts. Automate the ALLL with Abrigo and gain significant time savings compared to spreadsheet-based calculations, as well as more transparent documentation, a defensible process for auditors and examiners, and a smoother transition to CECL.
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