Written By: MEBiery

Due to the shift from an incurred to current expected credit loss model (CECL), Abrigo clients have been advised to start working on loan-level data collection now as a first step toward being compliant under future GAAP. However, many banks are unsure of what data they have, which fields they need to start tracking and how to store the amount of data necessary for CECL.

A good starting point is for financial institutions to evaluate the data they have available from their core system or similar and to check the data against the following checklist.

Data Adequacy Checklist

  •  The data is labeled appropriately (headers consistently applied and are understandable)
  •  Data does not contain duplicates (fields, rows or entities)
  •  There are no inconsistencies in values (e.g., truncated by 000’s vs. not truncated)
  •  Data is stored in the right format (e.g., numbers stored as numbers, zip codes stored as text)
  •  The file extracted from the core system is stored as the right file type
  •  File creation is automated; not requiring manual file creation
  •  Data is reliable and standardized throughout the institution, across all departments
  •  Data fields are standardized and governed to ensure consistency going forward
  •  Data storage does not have an archiving time limit (e.g., 13 months)
  •  Data is accessible (usable format like exportable Excel files, integrates with other solutions)
  •  Archiving function captures data points required to perform range of robust methodologies

For more information on data preparation for CECL visit, whitepaper: A Practical CECL Action Plan