Committees : Audit
How banks should account for and record the modified loans of borrowers impacted by the new coronavirus has become an increasingly urgent issue.
CECL implementation is a chance for banks to improve their risk assessment and mitigation strategies and grow business while balancing risk and return.
CECL could put pressure on bank allowances in its first full quarter, but proposed relief from Congress creates uncertainty for the standard itself.
Banks should consider whether derivatives should play a larger role in risk management, following changes in hedge accounting rules.
Bank boards need to understand a key step in the rollout and ongoing compliance for the new credit loss standard: model validation.
The requirement to create a “reasonable and supportable” future forecast has become another hurdle for community bankers as they implement CECL.
The accounting board has delayed major standards for small firms, but they will need to ensure their new effective dates.
At a recent accounting conference, a trio of bankers expounded on some of the lessons they’ve learned from working with a vendor to calculate their allowances under the current expected credit loss model, or CECL.
Bankers need to keep in mind some key considerations as CECL’s effective date rapidly approaches.
There is no magic formula for being an effective bank director, but there are two traits that the best tend to exhibit.