CECL Insights
The traditional loss-minimizing approach to managing corporate trade credit can keep write-offs low but may be overly conservative.
COVID-19 has become, and will likely continue to be, a major driver of credit risk. In the webinar, we examine the impact of the coronavirus on private firms to identify which sectors and geographies have seen the greatest credit deterioration.
The impacts of COVID-19 are not uniform across the nation. Quantifying these differences is critical to making better informed business decisions.
Presentation slides form our webinar examining, consumer credit conditions under scenarios for Credit Unions.
Join Moody's Analytics and our panel of financial institution executives, as they share their challenges and successes in navigating the second round of the SBA's PPP Loan Program, as well as the potential for the third and fourth round of stimulus for small businesses.
COVID-19 has become, and will likely continue to be, a major driver of credit risk. In the webinar, we examine the impact of the coronavirus on private firms globally with a focus on emerging markets economies.
In this webinar we will look at the economic outlook and risks: global, Europe, Turkey. We will share Moody's Analytics model methodology and scenarios as well as provide the credit outlook. We will conclude the event by talking about the COVID19 impact.
Many banks went live with their models and systems for IFRS 9 provisioning more than two years ago. Now, the new accounting standard and the banks' implemented methods to comply with it will face their first serious challenge following the global outbreak of Coronavirus (COVID-19).
FSI published a brief report that takes stock of the measures introduced in several jurisdictions to influence the application of expected credit loss (ECL) methodologies amid the COVID-19 pandemic.
Join our experts as they review the business challenges that CECL presents beyond the reporting date numbers.
COVID-19 created additional complexities for institutions navigating CECL accounting standard. This paper provides a natural quantitative approach for incorporating concentration in the allowance process and portfolio management.
COVID-19 will have far reaching effects on the accounting for CECL and IFRS 9.
In light of the recent disruptions in economic conditions due to the COVID-19 outbreak, US Agencies (FDIC, FED, and OCC) announced two actions to allow banking organizations to continue lending to households and businesses.
US Agencies (FDIC, FED, and OCC) decided to adjust the calculation for credit concentration ratios used in the supervisory process.
The US regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications.
The FDIC Chair Jelena McWilliams wrote a letter to FASB urging a delay in transitions to, and exclusions from, certain accounting rules.
In connection with the release of the 2020 U.S. GAAP Financial Reporting Taxonomy, FASB has published the final 2020 FASB Taxonomy Implementation Guides.
US Agencies (FDIC, FED, and OCC) issued supplemental instructions to the Call Reports FFIEC 031, FFIEC 041, and FFIEC 051.
The initial intent of the CECL guidelines was to make loan-loss allowances more reactive to the credit environment. By setting aside greater allowances, organizations would be better prepared for a default.
OCC is proposing to revise the regulatory reporting requirements for stress testing of national banks and federal savings associations.
Moody's Analytics announced today that the ImpairmentStudio platform—the centerpiece of our Current Expected Credit Loss (CECL) solution—has completed a System and Organization Controls (SOC 1) Type 2 examination under the attestation standards established by the American Institute of Certified Public Accountants (AICPA).
One benefit CECL will bring to the accounting space is moving away from the complicated and burdensome accounting for Purchase Credit Impaired (PCI) assets.
Recent CECL impact disclosures point directly to credit cards as the largest driver of the allowance. We can confirm those recent disclosures by looking at the consumer default volumes chart in Figure 1,which clearly point to the credit card segment as being one of the largest contributors of loss today.
Using multiple scenarios in CECL can temper some of the volatility in the economic forecasts – the part that results from our inability to forecast the economy with complete precision.
FASB proposed an Accounting Standards Update on codification improvements, which covers proposed modifications for topics such as credit losses, derivatives and hedging, fair value measurement, financial Instruments, and leases.
FASB published an Accounting Standards Update (No. 2019-11) that addresses issues raised by stakeholders during the implementation of the Accounting Standards Update No. 2016-13 on the measurement of credit losses on financial instruments (Topic 326).
FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.
Learn to differentiate C&I, CRE, retail, and securities. Choose approaches at the right level of flexibility and sophistication. Apply model-free solutions based on historical internal or industry data.
RAROC and RORAC solutions that account for allowance and forward-looking IFRS 9 / CECL measures in return and risk.
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