Understanding Allowance for loan and lease losses (ALLL) lies at the heart of understanding CECL regulation issued by FASB (Financial Accounting Standards Board). Post financial crisis in 2007-2008, the FASB decided to change the way banks derive expected losses in the allowance for loan and lease losses (ALLL) calculation. The earlier impairment model will have to be replaced by the new CECL (Current Expected Credit Loss) model which is mandated to be effective by 2021.
Download this whitepaper to understand:
- The CECL model
- Importance of correctly analyzing historical information and current condition to predict future scenarios
- Challenges to CECL adoption
- Impacts of CECL on Banks
- How technology upgrade can help banks to deal with CECL
- How Newgen Enterprise Analytics Framework can help Banks comply with CECL