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	Podcast:		ABA Banking Journal Podcast
	Episode:		Where Banks Are on CECL, and Where They Need to Be
	Category:		Business
	Duration:		00:23:44
	Publish Date:		2019-03-13 16:16:48
	Description:		With the Current Expected Credit Loss standard for loan loss accounting coming into effect for many banks — and the vast majority of bank assets — on Jan. 1, 2020, where are bank CFOs and managers in the process of implementing CECL, and what challenges are they seeing? ABA accounting experts Michael Gullette and Joshua Stein provide a CECL update on the latest issue of the ABA Banking Journal Podcast. In this episode, Gullette and Stein explain: How CECL — which requires “life of loan” estimates of losses to be recorded for unimpaired loans at origination or purchase — may affect bank capital, and thus banks’ capacity to lend The untested performance of CECL in a stressed economic environment How forecasting uncertainty is already affecting longer-maturity loans, including to consumers The challenge of retrieving and formatting data and translating forecasts into financial statements How regulators and auditors are expected to address CECL — and why any regulatory flexibility provided may not be available under audit
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