You Know You Have to Implement CECL...
...The Problem is You Don't Know How Best to Do It.
For 40 years bankers have cut their teeth on the incurred loss method. Now it's time to shift to the Current Expected Credit Loss (CECL) method and you've got lots of questions...
...But not nearly enough answers.
The basics sound straight forward, but the devil is in the details.
You need to combine historical loss rates, and then adjust for current and expected future conditions. It's like marrying a supercomputer with a crystal ball.
It starts with data, but how do you know which data fields, and how much data is needed? Or even if you need a aggregate or loan level methodology?
Echo Partners, a NXTsoft company, can help you answer your CECL questions.
What's your next step?