covid-19
Allowance
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 »