Community Bank

Community bank CECL: 3 external drivers that may strengthen your model

Community bank CECL: 3 external drivers that may strengthen your model

As community banks continue to evaluate their data and develop and test methodologies for CECL modeling, some might not have enough data within their existing loan portfolios. To more effectively estimate forward-looking losses, community institutions should apply external key data elements (KDE) to help obtain the results required to satisfy their need for “reasonable and supportable forecasts.”