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What did 100 banks say in a CECL implementation progress survey?

Selecting a forecasting methodology is at the core of banks’ loss-estimation process for the Current Expected Credit Loss (CECL) standard and a telling overall snapshot of banks’ CECL implementation progress to date. Among 100 banks surveyed nationwide, 39% have already selected their forecasting methodology, according to a new white paper by MountainView Financial Solutions, a Situs company.

In the white paper, “On Track and On Time: CECL Implementation Progress at Banks,” 64% of banks state that model development is their greatest implementation challenge, while 52% of banks say they are leveraging existing statistical models to develop their CECL model.

A very positive note contained in the white paper, and perhaps a sigh of relief to the industry, is that 70% of banks have data captures in place for all types of assets on their balance sheets. The white paper also ranks the asset classes in which banks have data issues and will need benchmark data.

MountainView’s CECL white paper analyzes the answers to nine survey questions spanning across methodology, modeling, data and assistance from vendors. The online survey was open May 11 to Aug. 21 and targeted CECL committee and project team members at banks nationwide.

On Oct. 1, MountainView is hosting a webinar in which its presenters will translate survey answers into key takeaways and practical uses for banks of all sizes.