Latest Articles

FASB seeks comments on proposed CECL updates on accrued interest, recoveries, prepayments

FASB seeks comments on proposed CECL updates on accrued interest, recoveries, prepayments

Financial institutions and other parties interested in the current expected credit loss model, or CECL, have until Dec. 19 to ...
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board-meeting

FASB meeting: New disclosure requirements related to gross write-offs and recoveries

The Financial Accounting Standards Board (FASB) met today to discuss the current expected credit loss (CECL) accounting standard and expand ...
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CECL survey implementation poll

CECL survey: Most bankers to use 3rd-party vendors, advisors for CECL

A majority of bankers expect their financial institutions to use third-party vendors or a combination of advisors and third-party vendors ...
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Large banks push for a CECL extension

Large banks push for a CECL extension

The Bank Policy Institute (BPI), an organization conducting research and advocacy on behalf of America's leading banks, recently wrote a ...
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What one bank views as the key decisions ahead of CECL

What one bank views as the key decisions ahead of CECL

Financial institutions across the U.S. are grappling with the many changes that will be required as they implement the CECL ...
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Can a financial institution’s allowance be lower under CECL?

Can a financial institution’s allowance be lower under CECL?

Will examiners challenge financial institutions if the current expected credit loss method (CECL) results in a lower allowance than under ...
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Latest Resources

CECL and the CFO: Think implications, not just implementation

CECL and the CFO: Think implications, not just implementation

We’ve been hearing it from all sides: CECL will have an institution-wide impact – greater, it is proposed, than any accounting change in banking history. Considering the breadth and depth of the impact, the transition to, implementation of, and ongoing execution of CECL demand oversight from the institution’s top executives, and in particular, the CFO.
A practical CECL transition: Preparing with only one year left

A practical CECL transition: Preparing with only one year left

As financial institutions plan for their respective deadlines to implement the current expected credit loss (CECL) model, some are deliberating on what they should do in their final year to get ready. ASU 2016-13 is effective for public entities for fiscal years beginning after Dec. 15, 2019.
Interpreting CECL Modeling Results

Interpreting CECL Modeling Results

Financial institutions across the country are now actively preparing for the ALLL transition from the incurred loss to expected loss models. By now, most banks and credit unions are well aware of the methodology options under CECL. However, many are still having challenges interpreting results from their modeling exercises.

Tip Of The Day

Tie your credit risk management practices into your ALLL as much as possible - this may become a component of calculating expected credit losses

Poll

What type of data do you anticipate leveraging for your CECL calculation?

  • 1-5 years of detailed loan level data
  • 5+ years of detailed loan level data
  • 1-5 years of aggregate (pool level) data
  • 5+ years of aggregate (pool level) data
  • I don't know the difference

ALLL.com Insiders

CFO Corner -- “ALLL” about CECL

CFO Corner — “ALLL” about CECL

In this occasional feature, CFOs from financial institutions share their approaches to the ALLL and to the CECL transition, as ...
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The biggest initial impact of CECL on financial institutions

The biggest initial impact of CECL on financial institutions

Most financial institutions understand CECL, and more specifically applying the CECL model to their loan portfolio, represents the most significant ...
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Validating ALLL models under CECL – What might change?

Validating ALLL models under CECL – What might change?

What does model validation mean for the allowance for loan and lease losses and what will it mean under CECL? ...
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