Moody's Analytics Insights

Article
Stock Market Graph and Bar Chart

Leveraging Historical Loss Data for CECL

This paper explores the CECL standard's background, the choices community banks, regional banks, and credit unions face, and some suggested approaches for dealing with these challenges.

June 2019
Laurent BiradeDr. Yashan Wang , Warren Xu

Article
insight default image

Defining Economic Scenarios With Constant Severities

Alternative economic scenarios are invaluable for quantifying and managing forecast risk. In this article, we define these constant severity scenarios and the models used to estimate their probabilities.

June 2019

Webinar-on-Demand
Business and financial report

Moody's Analytics Webinar: CECL – Lending in Current Conditions

Join CECL experts Robby Holditch and Christian Henkel as they share practical examples and useful strategies applicable to your CECL implementation plan.

May 2019

Presentation
illuminated charts and graphs

CECL 20/20: A Clear View of the New Credit Loss Requirements

Starting in 2020, the Current Expected Credit Loss (CECL) accounting standard will require financial institutions to reserve for estimated lifetime losses on loans and leases as soon as they are originated. This presentation will provide analytical insight and practical recommendations to help lenders strategize and effectively prepare for the new rule.

May 2019

Article
Actuarial Models in IFRS 17 World

Reporting and CECL: A Seismic Shift for Accountants

From an accounting standpoint, the changes in how to account for credit-loss reserves within the banking, insurance, and lending industries stemming from the Financial Accounting Standards Board's (FASB) current expected credit losses (CECL) guidance are significant.

May 2019

Article

Podcast: CECL – New Accounting Standard and Its Impact on Community Banks

Moody's Analytics Director Robby Holditch recently visited the Barret School of Banking to discuss the upcoming current expected credit loss (CECL) accounting standard and its ramifications for the community banking space.

May 2019

Webinar-on-Demand

Beyond Compliance: Extending the Value of Risk Insights

The risk function has emerged as an important strategic decision-making partner for critical functions such as business development, finance, operations, and technology.

May 2019
Roshni Patel, Mehna Raissi, Jin Oh

Presentation
Graphic of successful business charts

Leveraging Economic Forecasts Through Qualitative Overlays

How to Leverage R&S Economic Forecasts in CECL? In this presentation we demonstrate how to incorporate scenarios effectively.

May 2019

Presentation

A CECL Benchmark Solution from Call Report Data for Banks and Credit Unions

Top-down approach for small institutions, small and/or young portfolios that produces scenario-conditioned lifetime net losses at different evaluation dates.

May 2019

Article
Stock Market Graph and Bar Chart

Earnings Volatility, Share Price Performance, and Credit Portfolio Management Under CECL and IFRS 9

This paper studies how earnings volatility induced by credit risk can impact share price performance for financial institutions under CECL and IFRS 9, and quantifies the benefit of an active credit risk management practice.

April 2019
Dr. Amnon Levy , Xuan Liang, Dr. Pierre Xu