Description
Examines the core principles of the Current Expected Credit Loss impairment standard.
Objectives
- Identify similarities and differences between current expected credit losses (CECL) and expected credit losses (ECL).
- Recall the key pillars of CECL and how the new standard changes the allowance calculation.
- Recall other aspects of CECL, such as purchased financial assets with credit deterioration.
Highlights
- Pillars of CECL
- Historical loss period - contractual term
- Data aggregation methods
- Life cycle losses
- Prepayments
- Loan commitments