Building a Current Expected Credit Loss Response Program
CECL, or current expected credit loss, is a new accounting standard that will change how financial institutions account for expected credit losses. Complying with the new CECL standard will have a major impact on an institution’s operations, accounting/finance, IT, credit, and risk processes and systems.
This guide discusses the rationale and timing for the accounting change, as well as the financial process and system changes required to comply, including:
- Modeling alternatives
- Required changes to financial statements and disclosures
- How to implement a CECL response program