CECL Model Changes: Increasing Portfolio 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.
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Data Gathering Best Practices
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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."
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CECL Data Prep Guide
CECL Data Prep Guide - Download the PDF