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    Incorporation of CECL Into Stress Testing and Capital Planning

    Join our experts as they review the business challenges that CECL presents beyond the reporting date numbers.

    Moody's Analytics subject matter experts, Laurent Birade, Olivier Brucker and Ed Young discuss the role of capital planning and stress testing after CECL.  Also discussed are forecasting options for CECL estimates and understanding the impact of COVID-19 scenario, including the results of a benchmark study.

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    Unlocking Trade Credit Limits for Enhanced Returns

    The traditional loss-minimizing approach to managing corporate trade credit can keep write-offs low but may be overly conservative.

    May 2020 WebPage Laurent Birade, Michael Denton, Gustavo Jimenez
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    Stress Testing Under COVID-19

    In this paper, we propose an alternative simple, coherent methodology that allows us to forecast and stress test the entire balance sheet and income statement for all of the roughly 6,000 banks in the United States consistently.

    April 2020 WebPage Olivier Brucker, Sunayana Mehra, Ed Young
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    Unfunded Commitments: Unintended Consequences in Times of Turmoil

    The COVID-19 pandemic has pushed many commercial entities to increase their borrowing and drawdown on their lines of credit. We use bank call report data to analyze the potential impact to capital levels at US financial institutions.

    April 2020 Pdf Laurent Birade, James Partridge, Alex Cannon
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    Dual risk rating and origination strategies: optional (until they are not)?

    During the last financial crisis, some of the better-performing commercial credits were originated under extremely conservative origination policies This paper explores risk rating options and advises what you can do now to enhance your origination process.

    April 2020 WebPage Laurent Birade, James Partridge
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    The Economics of Wholesale Credit

    Traditionally, corporate trade credit limits have been set based on customer size, an internal or external credit score, and a qualitative sense of risk appetite. These limits have been effective in minimizing write-offs, principally because they are conservative.

    March 2020 WebPage Michael Denton, Laurent Birade, Gustavo Jimenez
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    Cards and CECL estimates

    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.

    January 2020 WebPage Laurent BiradeDavid Fieldhouse

    Moody's Analytics Webinar: New Accounting Standards - Impact and Implementation for Insurers

    Join our Moody's Analytics experts as they focus on the implementation challenges of the new accounting standards – CECL, IFRS 9, IFRS 17 and LDTI.

    September 12, 2019 WebPage Laurent Birade, Srinivasan Iyer
    Webinar-on-Demand

    New Accounting Standards - Impact and Implementation for Insurers

    September 2019 WebPage Srinivasan Iyer, Laurent Birade
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    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 WebPage Laurent BiradeDr. Yashan Wang, Warren Xu
    Article

    A Framework for Disclosing Period-over-Period CECL-Estimate Changes

    While many institutions are currently in the throes of implementing the current expected credit loss (CECL) accounting standard, some are thinking ahead and some that are not. CECL will have an unavoidable impact on management disclosures, specifically around explaining period-over-period changes in allowance.

    March 2019 WebPage Laurent Birade
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