- Fully integrated with Finastra Phoenix for touch-free implementation
- Data from Fed, FRED and FFIEC built into solution
- Full user control over loan pooling, Q-factors, and scenario definitions
- Calculates capital for multiple CECL methods by pool for each scenario
- Provides graphical and tabular breakdown for the lowest, most efficient CECL projection
- Provides detailed breakdown for each pool and scenario
- Designed to provide effective CECL reporting out of the box
- Built on Power BI to give intuitive and click-through user experience
- All data and inputs are readily accesible for full auditability
Road to CECL
• CECL is a regulatory measure as a direct response of 2008 credit crisis.
• CECL is FASB’s (Financial Accounting Standards Board) mechanism to account for possible future credit losses.
• CECL will create the need for higher capital provision across the US banking sector.
• Analysis : Banks held insufficient capital to cover credit related losses
• Stress Testing (DFAST)
• Liquidity Ratios (LCR and NSFR)
• IFRS9 - IASB
• CECL - FASB
CECL Implementation Schedule
• Non-SEC filers are required to officially report CECL numbers From December 31, 2022
• Recommended best practice is a 12-month parallel run
• Business adjustment is estimated at 6 – 12 months
• Impact study on P&L is expected to take 3 – 6 months
CECL Implementation Considerations
• Banks must pool their loans appropriately.
• Banks must select the most suitable CECL methodology at the pool level.
• Banks may apply location specific qualitative factors to the macro-economic data used within these methodologies.