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Catalyst Corporate | Dec 05, 2022
Let Catalyst ease your regulatory checklist with our Current Expected Credit Loss (CECL) solution, called CECLution. ASC 326, better known as CECL, is the new accounting standard issued by the Financial Accounting Standards Board (FASB) for estimating loan losses. For credit unions, the new accounting standard takes effect with the fiscal year that begins after December 15, 2022. Credit unions with fiscal years that run January 1-December 31, should be compliant starting January 1, 2023.
The CECL accounting standard changes how credit unions are required to account for expected credit losses. A number of methods are permissible within the accounting guidance. At a high level, CECL requires estimating future potential losses based on a combination of historical experience, economic conditions and a reasonable and supportable forecast.
“CECLution is an independent, fast and flexible alternative to in-house solutions,” said Mark DeBree, Managing Principal of Catalyst Strategic Solutions. “The user-friendly platform gives credit unions the opportunity to customize inputs that accommodate different assumptions. Part of the beauty is that it is provided on a subscription basis that gives credit unions unlimited access to the platform.”
If you haven’t locked in the right CECL partner yet, we can help. Catalyst created CECLution to simplify the entire process for credit unions. CECLution is ideal for small to mid-sized credit unions and larger credit unions with limited complexity. CECLution aligns with industry best practice by capturing historical data, establishing a sound relationship to your chosen economic benchmark, and preparing a long-term forecast to estimate losses over the life of your loans. Watch the demo here.
Catalyst Strategic Solutions is ready to partner with your credit union to plan and implement CECL compliance strategies before the new year. Find out how CECLution can assist with the impending transition. Request a meeting today.