Benefits and Challenges of the “CECL” Approach

Michael Walker

Supervisory Research and Analysis Notes, 2019, issue 01, 12

Abstract: This note provides an overview of the Current Expected Credit Loss ("CECL") accounting approach for credit losses. It also discusses the potential benefits and challenges of the CECL approach to financial institutions and users of their financial statements.

Keywords: accounting standards; CECL; current expected credit losses; procyclicality; incurred loss; allowance for credit losses; loans; debt securities; financial modelling (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:fip:b00001:97264

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