FASB Assembles Transition Resource Group (TRG)

In a news release on March 22, the FASB announced members of the Transition Resource Group (TRG) for the upcoming CECL standard. Members of the TRG include auditors, users, financial services regulators and financial statement preparers.

Preparing for CECL data requirements

The importance of having adequate data lies in the fact that CECL will require many institutions to adopt new methodologies, or at least make changes to their current methodology. In order to decide what changes are best, most institutions will run scenarios parallel to the institution’s current ALLL. Put simply, if an institution does not have the right data in an accessible format, scenarios and parallels can’t be performed.

FASB CECL Roundtable

The FASB is scheduled to meet for a roundtable discussion on Thursday, February 4 with community bankers, the ABA and other interests concerned with the proposed CECL model. Prior to the meeting, two organizations have outlined their concerns.

Webinar: The CECL workshop series

A complimentary, webinar series presented by Abrigo and CliftonLarsonAllen.

The FASB’s CECL guidance is expected to be released in the first half of 2016. Implementation will be required in 2019 or 2020, but it is imperative to start readying a plan now. You know the basics of CECL, now learn actionable ways to prepare your institution. In this two-part webinar CECL workshop series, professionals from Abrigo and CliftonLarsonAllen, provided the latest information, key insights and examples to help you prepare your institution for compliance.

Prepare for CECL: Advice for smaller financial institutions

The clock is ticking on the FASB's plans to issue a final standard for its proposed CECL model. With a release of the final rule expected during the first quarter, financial institutions are anxious to determine how this fundamental shift in accounting for credit losses will eventually impact their ALLL and ultimately, their strategic and capital planning.

FASB to hold roundtable on CECL

The Financial Accounting Standards Board (FASB) will hold a roundtable discussion on its current expected credit loss (CECL) model during the first quarter.

5 risks the OCC is watching closely

Examiners with the Office of the Comptroller of the Currency (OCC) in upcoming months will emphasize review of financial institutions’ strategic, underwriting, cybersecurity, compliance, and interest rate risks, the OCC has announced. Read details from the report and comments from Thomas Curry, Comptroller of the Currency.

OCC survey highlights importance of risk ratings

Findings from a new survey of examiners with the Office of the Comptroller of the Currency (OCC) highlight the importance of credit risk rating systems. The OCC said its examiners are seeing increased credit risk as banks and federal savings associations have eased underwriting standards to pursue portfolio growth and yield.

Loan loss reserve levels continue to drop

Third-quarter loan loss reserves dipped below levels from a year earlier as U.S. banks, on average, continued to slow the rate at which they reduced pools of money set aside to cover incurred credit losses.

Begin preparing now for CECL, says Federal Reserve

Federal Reserve officials recently described what financial institutions should do now to prepare for the current expected credit loss model, or CECL. See the nine steps outlined by the Fed for preparing now.

FASB sets preliminary CECL effective dates: 2019 for large banks; 2020 for others

Most U.S. financial institutions would be required to utilize the proposed current expected credit loss model, or CECL, beginning in 2019, although smaller banks would have an additional year to shift from the incurred-loss model, the Financial Accounting Standards Board (FASB) ruled Wednesday.

FASB to outline CECL effective dates

The Financial Accounting Standards Board on Nov. 11 will outline effective dates for its proposed current expected credit loss model, or CECL – a move that will give financial institutions their first official view of the possible timeline for implementing the model’s sweeping changes.
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