The transition to CECL is here. Considered one of the most impactful regulations, many expect CECL to increase their allowance and have a long-term effect on operations.
Firms will need to develop a CECL-compliant model, which can require more robust data, refined credit risk models, and greater internal modeling resources. Above all, firms will need to have a process in place to ensure oversight among senior management and compliance with auditors.
Moody's Analytics has experience working with a wide range of institutions in their preparation for CECL. View our latest FAQs on the modeling challenges your peers are most concerned about.