Seeing CECL’s competitive advantage
7/26/2019 1:57:50 AM
The Current Expected Credit Loss accounting standard (CECL) takes effect for financial institutions as early as next year, though palpable foot-dragging has accompanied the ramp up. And no wonder: Many view it as a regulatory burden as thorny as its tongue-twisting title. As one of the biggest changes to bank accounting in generations, CECL will require institutions to calculate the expected loss over the life of each loan—and set aside reserves at the time of origination to cover those losses.