CECL Model Changes: Increasing Portfolio Data

 

CECL data

 

One of the largest challenges institutions will face in transitioning to the CECL model is the increase in data required to run a more robust, forward-looking model. In order to forecast expected losses, institutions will need to capture loan-level data, consisting of risk rating by individual loan, loan duration, individual loan balance, individual loan charge-offs and recoveries (partial and full), individual loan segmentation, and any other fields that would be relevant to the institution in performing the calculation.

To learn more about CECL, access the CECL Prep Kit for additional resources.


Related Asset - Video
Data Gathering Best Practices
 

Related Asset - Blog
Final CECL guidance issued by FASB

Excerpt Pulled From Blog:

"The Financial Accounting Standards Board (FASB) has issued its final guidance on the new current expected credit loss (CECL) model. Here are the details."

Read More: http://www.alll.com/resource-center/final-cecl-guidance-issued-fasb/


Related Asset - Whitepaper:
CECL Data Prep Guide

CECL Data Prep Guide - Download the PDF

 


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One Comment

alenhart

Many institutions are wisely being proactive and starting to collect loan level data now. They may not need it immediately, but they are building up a solid history of detailed data that will make conducting a more robust analysis easier in the future.

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