by
Catalyst Corporate | Jan 06, 2023
Credit unions with fiscal years that began January 1 should now be compliant with Current Expected Credit Loss (CECL), the Financial Accounting Standards Board’s new accounting standard for estimating loan losses. For credit unions, CECL takes effect with the fiscal year that begins after December 15, 2022.
The CECL accounting standard changes how credit unions are required to account for expected credit losses. At a high level, CECL requires estimating future potential losses based on a combination of historical experience, economic conditions and supportable forecast.
If you haven’t locked in the right CECL partner yet, Catalyst Strategic Solutions can help. Catalyst created an online platform, called CECLution, to simplify the entire loan loss accounting process for credit unions. Ideal for 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.
“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. And because CECLution is provided on a subscription basis, credit unions have unlimited access to the platform.”
Catalyst Strategic Solutions is ready to partner with your credit union to implement your CECL compliance strategies in 2023. Find out how CECLution can be your CECL solution. Request a meeting today.