CECL Methodologies: Pros and Cons for Your Portfolio

Given that the CECL model is non-prescriptive, banks and credit unions have flexibility in choosing the right CECL methodologies for their institution’s unique data situation. This flexibility often leads financial institutions to ask one simple question: Where do I begin?

In this complimentary infographic, learn about the 7 methodologies available to use and when they are or are not recommended.

The methodologies covered include: 

• Static pool analysis
• Discounted cash flow
• Migration analysis
• Transition matrix
• Vintage analysis
• WARM/Remaining life
• Probability of default/Loss given default