CECL Data: Don’t Wait, Start Collecting Key Data Elements Now

The new Current Expected Credit Loss (CECL) standards will require all credit issuing, buying and holding banks and credit unions to perform a new set of calculations, which the institutions will need to base on extremely granular and high-quality data. Banks and credit unions can purchase so-called market data to make these calculations, but this market data contains loan loss experiences from institutions with both low and high levels of losses and could easily lead to an institution setting aside a higher than necessary reserve.

Institutions that believe they have an advantage with respect to composition, underwriting requirements, or other idiosyncratic factors will be far better off collecting their own key data elements (KDEs) and using these to complete their calculations. Download our white paper to learn why.