CRE CECL Methodologies
The second in our CECL Quantification webinar series, this webinar discussed how commercial real estate (CRE) models and methodologies can be leveraged to fulfill CECL requirements, and key considerations in transitioning these models.
Implementation of the new financial instruments impairment standard (CECL), may take between twelve months to two years and over 62% of banks surveyed by Moody’s Analytics expect CECL compliance to increase their overall provisions.
Successful implementation requires understanding the impact of the accounting standard on provisions and identification of appropriate methodologies to incorporate the forward-looking information and life-of-loan horizon required for CECL.
Moody’s Analytics has designed a series of CECL Methodology webinars to help firms of all sizes with the tactical and strategic considerations when selecting the best modeling approach.
Related Insights
What is CECL (Current Expected Credit Loss)?In this video, Chris Henkel from Moody’s Analytics provides a brief overview about the new accounting standard, Current Expected Credit Loss (CECL). Listen in to learn more about the implications and how institutions can prepare. |
Rethinking Commercial Real Estate Credit RiskCommercial real estate (CRE) loans are seeing strong loan growth, combined with easing underwriting, resulting in increased credit risk. CRE mortgages often make up a significant part of a bank’s loan portfolio. CRE lending is quickly becoming an area of focus for regulators, who are looking into industry practices and concentration risk management at banks of all sizes. |
CRE CECL Methodologies Webinar SlidesIn this presentation for the CECL Quantification webinar series, we discuss how commercial real estate (CRE) models and methodologies can be leveraged to fulfill CECL requirements, and key considerations in transitioning these models. |
The Value of Granular Risk Rating Models for CECLGranular risk rating models allow creditors to understand the credit risk of individual loans in a portfolio, facilitating underwriting and monitoring activities. In this webinar we will outline the value of granular risk rating models for CECL. |
Implications of the FASB's New Credit Loss Impairment StandardOn June 16, FASB issued the much anticipated financial instruments impairment standards update. The implications of this standard are significant and will change the way credit losses are measured for most financial assets (e.g. receivables, debt securities and loans). |
Preparing for the New Impairment Requirements: A Practitioner's ViewThis article describes the new standards set forth by the FASB. It covers the history of the ALLL and explains how the recent financial crisis highlighted the need for new standards. |
Preparing Community Banks for CECLThe FASB voted to move forward with the new impairment model, known as the Current Expected Credit Loss (“CECL”) model, which will change how you calculate allowance for credit losses. Ensure your institution identifies challenges and processes early. |
Effective Risk Management in CRE Lending Webinar Presentation SlidesThis webinar discusses the importance of effective credit risk management for commercial real estate lending. |
Effective Risk Management in CRE LendingCommercial real estate (CRE) mortgages can often make up a significant part of the loan portfolio. To gain competitive advantage in the marketplace, lending officer's must acquire an in-depth understanding of their borrowers' CRE portfolios. |
Estimating Commercial Real Estate (CRE) Stressed Loss Measures Under Federal Reserve 2015 Comprehensive Capital Analysis and Review (CCAR) ScenariosThe Comprehensive Capital Analysis and Review (CCAR) program is an annual capital adequacy exercise conducted under the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act rules. |
Private Firm C&I Credit Risk Solutions & Best PracticesThis webinar discusses credit risk management challenges, best practices, stress testing model and approach and private firm C&I risk tools. |
CRE Credit Risk Solutions and Best PracticesMoody’s Analytics CRE credit risk experts, Christian Henkel and Sumit Grover, discuss the topics including an overview of CRE credit risk management challenges, data management and credit risk solutions that address the needs of CRE risk managers, and CRE stress testing model and approach. |
CRE Credit Risk Solutions and Best Practices Webinar SlidesMoody's Analytics CRE credit risk experts, Christian Henkel and Sumit Grover, discuss the topics including an overview of CRE credit risk management challenges, data management and credit risk solutions that address the needs of CRE risk managers, and CRE stress testing model and approach. |
ALLL and the New EstimateThis presentation gives an update on the proposed impairment model and improving the measurement of credit losses. |
Establishing Best Practices for Stress Testing your Private Company C&I PortfoliosThis webinar provides an overview on the following of the regulatory environment, stress testing challenges and best practices for a sound stress testing framework and the Moody’s Analytics RiskCalc Plus. |
Establishing Best Practices for Stress Testing your Private Company C&I PortfoliosLearn about stress testing best practices and our RiskCalc™ Plus United States Stress Testing Models. This webinar focuses on stress testing best practices for the private company C&I asset class. |
Estimating Commercial Real Estate (CRE) Stressed Loss Measures Under Federal Reserve 2013 Comprehensive Capital Analysis and Review (CCAR) ScenariosDownload this whitepaper to understand how Moody's Analytics' analysis derives the credit loss estimates for the CRE loan portfolios held by CCAR firms. Our analysis estimates that the expected nine quarter, cumulative CRE portfolio loss through the end of 2014 is 4.7% under the CCAR 2013 Severely Adverse scenario. We attribute the lower loss estimate compared to last year's stressed scenario to a number of factors, which we discuss. |
Stress Testing Commercial Real Estate Loan Credit Risk: A Scenario-Based ApproachThe future remains inherently uncertain. This white paper describes how Scenario-based credit risk models are becoming a business necessity, given increased regulatory and internal risk management requirements for periodic stress tests. |
Modeling Commercial Real Estate Loan Credit Risk: An OverviewIn this paper, we present the Moody's Analytics framework for measuring commercial real estate loan credit risk, which is the model at the core of our Commercial Mortgage Metrics (CMM)™ product. We describe our modeling approaches for default probability, loss given default (LGD), Expected Loss (EL), and other related risk measures. |
How Banks and Credit Unions Can Prepare for CECL ImplementationIn this short video, learn the four key steps institutions should take to prepare for CECL implementation.
WebPage
Christian Henkel, Emil Lopez
|
