ASC 326 Current Expected Credit Loss (“CECL”) brought many changes to the allowance process but one item remained the same: the need for qualitative factors.

This whitepaper will take the opportunity to debunk some of the misconceptions or myths in the market surrounding CECL. Our insights come from what we have seen from those institutions that have already adopted CECL as well our clients we are currently assisting with implementation.

This whitepaper details updates to key data points and analysis from 12/31/2020 (shown in prior publications) through 6/30/2021.

The largest cohort of CECL adopters by volume is now beginning to prepare for CECL which is only 6 quarters away. Whatever your plan, execute it.

This whitepaper discusses the many complexities related to CECL and examines the importance of institutions taking a proactive monitoring and backtesting approach.