by Jonathan Leonardelli | Feb 25, 2019 | Regulations
To appropriately prepare for CECL a financial institution (FI) must have a hard heart-to-heart with itself about its data. Almost always, simply collecting data in a worksheet, reviewing it for gaps, and then giving it the thumbs up is insufficient. Data drives all...
by Dr. Jimmie Lenz | Dec 19, 2018 | Regulations
The Federal Deposit Insurance Corporation (FDIC) approved a measure that will allow a three-year phase in of the impact of CECL on regulatory capital yesterday (12/18/18). This change will also delay the impact on bank stress tests until 2020. The change does not...
by Tan Cheng See | Nov 19, 2018 | Regulations
Time is ticking for the 450 insurers around the world to comply with the International Financial Reporting Standard 17 (IFRS 17) by January 1, 2021 for companies with their financial year starting on January 1. Insurers are at different stages of preparation, ranging...
by Dr. Jimmie Lenz | Oct 25, 2018 | Regulations
Accounting and regulatory changes often require resources and efforts above and beyond “business as usual”, especially those like CECL that are significant departures from previous methods. The efforts needed can be as complex as those for a completely new technology...
by Dr. Jimmie Lenz | Jun 27, 2018 | Regulations
The ramifications of CECL on Financial Institutions has in large part focused on Banks, but as we addressed in a recent paper, “Current Expected Credit Loss: Why the Expectations Are Different,” this new accounting treatment extends to a much larger universe. An...
by Philip Lawton | Oct 12, 2017 | Regulations
Determining whether an unimpaired asset’s credit risk has meaningfully increased since the asset was initially recognized is one of the most consequential issues banks encounter in complying with IFRS 9. Recall the stakes: The expected credit loss for Stage 1 assets...
