Is your bank ready for CECL?
The new standard for Current Expected Credit Loss (CECL) greatly increases the complexity of the allowance estimation process. Implementing CECL is complex, in part because the standards are new, and because there is no consensus on implementation specifics. Regardless of how the new standards are interpreted, compliance will require financial institutions to revise or develop new models and adapt their model risk management program. Effective credit loss model development under CECL will have to integrate predictive modeling, analytics, advanced data management, and accounting principles.
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ECON|Analysis, LLC specializes in the development and validation of quantitative and qualitative models across the financial services sector and have supported a wide range of U.S. banks in implementing the CECL standard.
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Our models are highly customized to our clients' individual positions but they are all unique based on extensive historical data, reasonable forecasts, and defensible scenarios to estimate lifetime credit losses for all portfolios.
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