by Jonathan Leonardelli, FRM | Mar 11, 2019 | CECL
I don’t know about you, but I find caterpillars to be a bit creepy[1]. On the other hand, I find butterflies to be beautiful[2]. Oddly enough, this aligns to my views on the different stages of data in relation to model development. As a financial institution (FI)...
by Jonathan Leonardelli, FRM | Feb 25, 2019 | CECL
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 | Case Study
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 Dr. Jimmie Lenz | Jun 27, 2018 | CECL
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 | Aug 4, 2017 | Regulations
Under IFRS 9, Financial Instruments, banks will have to estimate the present value of expected credit losses in a way that reflects not only past events but also current and prospective economic conditions. Clearly, complying with the 160-page standard will require...
