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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