ALLL / CECL Glossary
Banking with all of the various acronyms can be quite confusing, not to mention when you add in terms and acronyms from the FASB. To make it easier, we've developed this [...]
Don’t You Forget About Me: The Impact of CECL on Debt Securities
Notes from the 2018 National CECL Conference session with Gordon Dobner, BKD; John Griffin, BKD; and Dale Sheller, The Baker Group The impact of estimating credit losses for debt securities for [...]
What is the Cohort Methodology for CECL?
Noting the diversity in portfolio sizes, complexities, as well as practices of applying the current incurred loss methodology, the FASB’s guidance on CECL offers quite a bit of latitude to financial [...]
Forecasting: Considerations for a Reasonable and Supportable CECL Forecast
Forecasting might not be top of mind as you prepare for CECL. Understanding the standard, deciding whether to handle the transition internally or engage third party assistance, gathering data, pooling, choosing [...]
Job Growth on a Roll; U.S. at Full Employment
Guest blog by Dr. Tom Cunningham, Economist and MST Advisory Services, Senior Advisor- Economics The Bureau of Labor Statistics’ jobs report for October was extremely strong. The [...]
What is the Vintage Methodology for CECL?
The Vintage Methodology under CECL (Current Expected Credit Loss) measures the expected loss calculation for future periods based on historical performance by the origination period of loans with similar life cycles and risk characteristics. It’s advantageous to [...]
What is the PD/LGD Transition Matrix Model for CECL?
The transition matrix model (TMM) determines the probability of default (PD) of loans by tracking the historical movement of loans between loan states over a defined period [...]
Implementing CECL: Updates from the Regulators and Auditors
This blog contains notes from the 2018 National CECL Conference session with Graham Dyer, Grant Thornton and TRG Member; Larry Smith, FTI Consulting and Former FASB member; [...]
Florence Distorts Job Numbers; Labor Market Remains Strong
Guest blog by Dr. Tom Cunningham, Economist and MST Advisory Services, Senior Advisor- Economics The headline numbers from the Bureau of Labor Statistics’ (BLS) September jobs report suggest [...]
Time – and CECL – Wait for No One
Use our industry experience to build your institution a CECL “backward timeline.” From the very announcement of the CECL implementation dates, we have been working with lenders [...]
Overcoming Organizational Obstacles in Transitioning to CECL
Who owns the present Allowance for Loan and Lease Losses (ALLL) and the new Allowance for Credit Losses (ACL) processes in your financial institution? The Chief Financial Officer [...]
Takeaways from the July 30, 2018 Ask the Regulators Webinar – Part 5
This is the final in our five-part series discussing the 27 questions addressed by the regulators in their most recent joint webinar on CECL. […]