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    By the Numbers

    5
    The model risk management standards issued more than five years ago by the Federal Reserve and OCC will be a key element for CECL implementation, same as for any quantitative risk management process.
    50%
    Firms may need to increase their ALLL by as much as 50% over current levels when CECL is implemented, although results will be driven by ultimate portfolio composition and current approach to loan and lease loss allowance.
    3
    CECL affects three groups of financial assets: assets carried at amortized cost, purchased credit-deteriorated assets, and available-for-sale securities.
    62%
    62% of surveyed banks expect to increase their provisions as a result of CECL implementation.
    5
    Under CECL, entities must disclose credit quality indicators for a period of up to five years, depending on the portfolio.
    40%
    A Moody’s Analytics survey found that more than 40% of respondents planned to integrate IFRS 9 requirements into their existing Basel infrastructure.
    25%
    Small business loans constitute more than a quarter of the lending volume in the US.
    85%
    In our industry balance sheet forecast model, three principal components can account for more than 85% of the total variance of all the macroeconomic variables.
    $250b
    The cutoff: Financial institutions with more than $250 billion in assets and more than $10 billion in foreign exposure must report net credit exposures to unaffiliated counterparties on a daily basis.
    $15b
    The financial industry has invested $12 billion to $15 billion in risk technology and data infrastructure in recent years.
    38%
    For mezzanine tranches, shift to standardized approaches can increase capital requirements by as much as 38%.
    26
    The supervisory weighting factors for the current exposure method and SA-CCR differ by as much as 26 percentage points.
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