White paper: Six methodologies for CECL implementation

Which of the CECL methodology options are best for your institution?

White paper: Six methodologies for CECL implementation

The Current Expected Credit Loss model (CECL) will be a significant change to the current process each financial institution uses to estimate its allowance for loan losses. But the real question is: How do you implement a new model that is so different from what you’re accustomed to using?

The answer is planning. Working on your CECL methodology now will give your institution time to identify issues and fine tune your model and methodology while you can. But first you must choose your methodology.

In this white paper, you’ll explore six different CECL methodologies your institution can use to implement CECL before the deadline:

  • Cumulative loss rate
  • Weighted average remaining life to maturity (WARM)
  • Vintage loss rate
  • Migration analysis
  • Probability of default
  • Discounted cash flow

You’ll also take away best practices around governance and board responsibilities, along with three steps to get started with CECL.

Download whitepaper