WASHINGTON--The Federal Reserve has announced plans to release a second tool to help community financial institutions implement the Current Expected Credit Losses, or CECL, accounting standard.
While not aimed at credit unions, the Fed’s announcement could offer some direction on tools CUs may use in the future.
Known as the Expected Losses Estimator, or ELE, the spreadsheet-based tool utilizes a financial institution's loan-level data and management assumptions to aid community financial institutions in calculating their CECL allowances, according to the Fed.
"The Fed's unique approach in providing CECL compliance tools for small banks, through SCALE and today's introduction of the ELE tool for more complex small banks, continue our work to tailor supervisory approaches to fit the size, risk and business model of financial institutions. I am confident these tools will assist our smaller banks enabling them to prioritize serving the financial needs of their communities and customers," said Governor Miki Bowman.
Webinar Planned
The ELE tool will be launched during an "Ask the Fed" webinar on June 16, according to the Fed, which said the session is intended for community financial institutions. Registration information is available at www.askthefed.org. The ELE tool will be available via www.supervisionoutreach.org/cecl.
According to the Fed, the launch of the ELE tool builds on its previous release of the Scaled CECL Allowance for Losses Estimator, or SCALE, tool to also help community financial institutions implement the CECL accounting standard.
Together, the ELE and SCALE tools provide two simplified approaches to CECL calculations for smaller community financial institutions.
Has Everyone But You Heard the News?
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com