Adapting to CECL: Beyond the Accounting

The new Financial Accounting Standards Board (FASB) standard for estimating expected credit losses has been dubbed the most significant change in the history of bank accounting. In addition to changing the way they calculate credit losses, most banks and financial services companies (insurance companies, finance companies, and credit unions) will need to make significant process changes in the way they collect data and adapt their existing technology, financial models, and governance structures to comply with the new standard.