In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard to calculate credit losses. CECL, or Current Expected Credit Loss, will require financial institutions to calculate credit losses over the life of a loan rather than through incurred loss.
Although CECL doesn’t start going into effect until December 2019, banks will benefit from starting to prepare now by collecting their own key data elements (KDEs). It is time-consuming work, but there can be significant potential savings if banks start collecting, organizing and cleaning KDEs now.
For more information on CECL data collection and the benefits of taking a proactive approach to the new standards, download our CECL white paper here.
If you would like to know more about the services we provide to prepare for CECL, please contact Ed Robertson.