What You Need to Know

Implementation of the new Current Expected Credit Loss (CECL) standard is rapidly approaching clients in the bank and non-bank industry. Public entities (that are SEC filers) must adopt CECL guidelines for the fiscal years beginning after 12/15/2019. All other industry participants must be CECL compliant for fiscal years beginning after 12/15/2020. The goal of CECL is to replace the concept of an incurred loss model to the current expected credit loss model. Lenders will be tasked to collect a significantly larger volume of data, including loan-level data (e.g. economic data, borrower financial data) that could be correlated to loan losses.

We’re Ready to Start

Warbird Consulting Partners (WCP) are uniquely positioned to assist clients navigate this new requirement, both with program implementation and effective monitoring to more accurately and timely reflect losses within a given loan portfolio.