ALEXANDRIA, Va. –The National Credit Union Administration has released the June 2024 update of its Simplified CECL Tool, as well as its new cybersecurity report.
According to NCUA, the CECL Tool update includes the latest life-of-loan—or Weighted Average Remaining Maturity—factors.
The agency noted that in 2023 the CECL accounting standard went into effect for credit unions with assets of $10 million or more.
“For credit unions that are currently using the Simplified CECL Tool, the June 2024 release is provided to determine the credit loss expense—or provision for credit losses—for the period that ends June 30, 2024,” NCUA said. “Credit unions with assets of less than $10 million may consider using the Simplified CECL Tool as it could provide a more accurate measure of credit losses and enable stronger feedback for loan portfolio management.”
How to Get Latest Version
To get the latest version, please visit The Simplified CECL Tool page and click on “Download the Latest Simplified CECL Tool.” NCUA said to ease the use of the Simplified CECL Tool, CU leaders should review Frequently Asked Questions, the User Guide, and the Model Development Document located on the Simplified CECL Tool page.
“The Simplified CECL Tool is provided to credit unions as an option for estimating the allowance for credit losses on loans and leases.,” the agency said, adding it implements quarterly updates to enable a credit union to use the tool before its books are closed and its quarterly NCUA Call Report is submitted.
For info: CECL Resources page.
Cybersecurity Report Released
Separately, NCUA has released its new Cybersecurity and Credit Union System Resilience Report.
The agency said the cybersecurity report summarizes the current cybersecurity threat landscape, highlights the agency’s key cybersecurity initiatives, and outlines the agency’s ongoing efforts to enhance cybersecurity preparedness and resilience within the credit union industry.
Ongoing Vigilance
“In the face of an ever-evolving cybersecurity threat landscape, the need for ongoing vigilance in the credit union sector cannot be overstated,” NCUA Chairman Todd M. Harper said in a statement. “The NCUA is committed to ensuring consistency, transparency, and accountability in its cybersecurity examination program and related activities. Further, over the last several years the NCUA has made major strides in promoting a culture of cybersecurity awareness and resilience among credit unions.”
NCUA noted the Cybersecurity and Credit Union Resilience Report is required by the Consolidated Appropriations Act, 2021 and provides information on:
- NCUA policies and procedures to address cybersecurity risks and activities.
- Cybersecurity resilience within the credit union system.
- Current and emerging threats.
- NCUA’s collaboration with other federal agencies, industry stakeholders, and cybersecurity experts.
Request for Third-Party Oversight Authority
“For 2024, the NCUA remains committed to fortifying cybersecurity resilience through targeted examinations, comprehensive risk assessments, and educational outreach initiatives,” the agency said. “Further, the NCUA will continue to request that Congress provide the ability for the NCUA to supervise and examine third-party service providers.”