Some are calling it the most significant accounting change for the banking industry in over four decades.
The Current Expected Credit Loss (Cecl) rule, which was finalised by the US Financial Accounting Standards Board (FASB) on June 16, will require banks to immediately set aside the full amount of expected credit losses over the lifetime of a loan once it is originated. Currently, credit losses are only recognised in financial statements at the point of impairment.
"Cecl has changed the accoun
The week on Risk.net, December 2–8, 2017Receive this by email