CECL – New Impairment Model


The Current Expected Credit Loss (CECL) model, finalized in June 2016, is scheduled to be implemented in December 2019 for SEC-filing institutions. CECL is expected to significantly alter the manner in which financial institutions recognize credit impairments of financial assets, while changing the way they operate. This whitepaper summarizes the concepts of the CECL model, in addition to its modeling principles and implementation challenges.

What you learn:

  • The major differences between CECL and IFRS 9
  • Modeling methodologies available for CECL implementation
  • Advanced modeling techniques to overcome challenges in incorporating forward-looking information to develop lifetime expected credit losses