Allowance
covid-19
CECL vs. Incurred Loss: How the Pandemic Affected the Allowance
In 2020, most SEC-filing institutions were required to move to the new current expected credit loss, or CECL, model. Following the 2007-2008 financial crisis, the CECL model aimed to provide more timely adjustments of reserve levels than the existing incurred loss method. Unlike the incurred loss model, the CECL model is forward-looking, estimating loans’ lifetime... Read more »
coronavirus
How the Coronavirus Could Impact CECL, Allowance
The last three months have brought an influx of responsibilities and challenges for bank and credit union CFOs to consider. As if CFOs didn’t have enough to focus on already with reporting tied to financials, asset/liability management, strategic planning, and enhancing the bottom line, the pandemic stormed in as 2020 was off to a solid... Read more »