To some bankers, the Current Expected Loss Standard (CECL) might as well be a reboot of Y2K. Remember? That was when computers were supposed to go haywire around the turn of the 21st Century. Of course, once the clock struck 12:00 a.m. Jan. 1, 2000, the anticipated tech apocalypse never arrived. And so the good news: CECL Read More
With a sound not unlike this—“CECL, CECL, CECL”—the clock is ticking for banks to comply with the Current Expected Credit Loss standard. Waiting until the last minute is no option at all, given the unprecedented changes afoot. CECL represents one of the largest revamps in history to bank accounting. There’s no denying it’s a burden for many Read More
One way to look at banking, data, silos and credit loss is to consider the image offered by Peter Cherpak, Executive Vice President and Partner at Ardmore Banking Advisors in west suburban Philadelphia: “There’s a lot of lost bankers with spreadsheets all doing their own thing, running around, creating trial balances and information that is uncontrolled and Read More
Last year, the Financial Accounting Standards Board (FASB) issued several major documents: Accounting Standards Update (ASU) 2016-13, and Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. That adds up to Accounting Standards Codification (ASC) 326—and many finance professionals, so used to the world of numbers, understandably puzzled over the alphabet soup of letters Read More
The auditors are sharpening their pencils—and now's the time for banks to prepare for the Current Expected Credit Loss (CECL) standard. Tom Caragher of Fiserv walks us through everything banks need to know about CECL including which records to pulland which staff members to recruit to find to present first-rate data. From the podcast: Tom recently authored Read More
A recent poll asked financial services leaders when their organizations expect to execute preliminary current expected credit loss (CECL) calculations for the allowance for loan and lease losses (ALLL). And their statements on the future have direct implications on the present. Forty-two percent of respondents said institutions should execute calculations by the fourth quarter of 2017. Another Read More
In June 2016, the Financial Accounting Standards Board (FASB) issued a new standard for the timely reporting of report credit losses on loans and other financial instruments—and in the process, created one of the most significant changes in recent years for financial institutions. The final version of the current expected credit loss standard (CECL) not only affects Read More
Last June, the Financial Accounting Standards Board (FASB) issued the final current expected credit loss (CECL) standard as a prevention technique to avoid a future financial crisis. And if CECL is new to you, you’re not alone. In a recent Fiserv webinar, more than 70 percent of industry professionals polled admitted to being only “a little” or Read More
