How prepared are financial institutions when it comes to the current expected credit loss, or CECL? Find out Tuesday during a webinar hosted by the American Bankers Association, when Abrigo will discuss the findings of its 2019 CECL Survey. Abrigo, which operates ALLL.com, is the provider of Sageworks ALLL and MST’s Loan Loss Analyzer. [The webinar has ended, but the full survey results are available. LEARN MORE.]
The survey, conducted for the third year in a row, polled institutions on their progress with implementing CECL, which has ramifications for both earnings and capital allocation. In the webinar, attendees will learn survey results, including:
• Where institutions are in their CECL implementation. The webinar will review how far along banks and credit unions report that they are, whether it’s in collecting data, selecting methodologies, producing parallel runs, or engaging third parties to help with the transition.
• Which methodologies peer banks are considering. The survey examined the reserve methodologies under consideration, as well as the loan pooling and segmentation approaches.
• The expected outcomes of CECL. Survey respondents reported on how (and whether) they expect CECL to impact reserves, loan pricing, loan underwriting, and other financial institution issues.
• How bankers’ views are changing. Previous survey responses from 2018, 2017, and in some cases, 2016, can help gauge general changes in financial institutions’ views on CECL.
During the webinar, Abrigo Risk Consultants Neekis Hammond and Chris Emery will walk attendees through the survey findings and address how financial institutions can be best prepared to meet their respective deadlines. Public business entities that meet the definition of an SEC filer must comply with CECL by Q1 2020. Non-SEC filers and all other entities have until 2021 or 2022 to transition to forward-looking credit loss models.
A whitepaper that will be released after the webinar to attendees will provide additional details on the survey results, as well as commentary from additional Abrigo consultants who have been working with financial institutions across the United States.