Session Description: Current Expected Credit Loss (CECL) represents the biggest accounting standards change in years. While large banks are potentially equipped to adapt to this rule, other financial institutions may face challenges to be CECL-ready.
Join us for a webinar during which we’ll address potential hurdles and demonstrate how TransUnion’s CECL Credit Loss CalculatorSM — created in partnership with EXL Service — works and how it assists you in becoming CECL-ready. We’ll discuss:
- Data assessment: The need for granular data on loan originations, a comprehensive snapshot of current portfolios, and a long history to analyze losses over the life of loans.
- Forecasting Approach: The approaches that exist depending on portfolio size, loss rates, and changes in portfolio composition and performance — and why some may work better than others.
- Credit cards and revolving products: The challenges posed by the CECL guideline that losses from undrawn portions of credit lines need not be considered in reserve estimation for credit cards and revolving lines.
- Macroeconomic scenarios: The impact these conditions can have on loan losses and why it matters when estimating reserves.
- Platform demonstration: From data preparation through the creation of auditable regulatory reports, this calculator will help you meet tight implementation timelines and navigate the intricate provisions of CECL regulations.
Speaker: Manish Jain, Vice President, EXL Service