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Information, Not Just Opinion

Implementing CECL: Updates from the Regulators and Auditors

By: mstbanking Oct 12, 2018 11:44:35 AM

This blog contains notes from the 2018 National CECL Conference session with Graham Dyer, Grant Thornton and TRG Member; Larry Smith, FTI Consulting and Former FASB member; and Chad Kellar, Crowe Horwath.

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Topics: cecl education, CECL

Florence Distorts Job Numbers; Labor Market Remains Strong

By: mstbanking Oct 9, 2018 10:53:54 AM

Guest blog by Dr. Tom Cunningham, Economist and MST Advisory Services, Senior Advisor- Economics

The headline numbers from the Bureau of Labor Statistics’ (BLS) September jobs report suggest a mixed employment situation. New jobs came in at just 134,000, well below the expected 180,000, while that headline unemployment rate, U3, fell 0.2 percentage points to 3.7 percent, slightly lower than the 3.8 percent expected.

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Topics: economic indicators, economic forecasting, CECL

Time - and CECL - Wait for No One

By: Natalie Crawford Oct 5, 2018 8:03:00 AM

Use our industry experience to build your institution a CECL “backward timeline.” 

From the very announcement of the CECL implementation dates, we have been working with lenders – and spilling a lot of ink – on timelines. When do you need to get started on your CECL transition to have enough time to be ready for your implementation date? 

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Topics: CECL

Overcoming Organizational Obstacles in Transitioning to CECL

By: Tom Flournoy Sep 28, 2018 9:06:00 AM

Who owns the present Allowance for Loan and Lease Losses (ALLL) and the new Allowance for Credit Losses (ACL) processes in your financial institution? The Chief Financial Officer (CFO)? The Chief Credit Officer (CCO)? The Chief Lending Officer (CLO)? Perhaps it is a shared function. In my 40 years in banking, I have seen the responsibility fall to each of these roles. 

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Topics: CECL

Takeaways from the July 30, 2018 Ask the Regulators Webinar - Part 5

By: Zach Englert Sep 21, 2018 8:24:00 AM

This is the final in our five-part series discussing the 27 questions addressed by the regulators in their most recent joint webinar on CECL. 

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Topics: CECL

ABA Endorses MST for CECL Software Solution

By: mstbanking Sep 17, 2018 4:37:12 PM

From the ABA . . . 

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Topics: CECL

The Devil's in the Data

By: Gus Alexander Sep 14, 2018 9:39:32 AM

Even as the new accounting standard for estimating the allowance was being announced in the summer of 2016, we knew the key issue – and the hardest part of transitioning to CECL – was going to be about data. We understood from the beginning that to comply with CECL we were going to need a lot of data, and that the data had to be of good, consistent quality. The concern remains paramount, in fact has grown. We see it everywhere: in webinars, white papers and conference presentations. The devil’s in the data. 

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Topics: CECL, Big Data

August Report Positive on Jobs and Earnings

By: mstbanking Sep 7, 2018 3:59:03 PM

Guest blog by Dr. Tom Cunningham, Economist and MST Advisory Services, Senior Advisor- Economics 

The September 7 national Employment Situation Report from the Bureau of Labor Statistics showed a net gain of 201,000 jobs for the month of August, 10,000 more than expected. It’s a strong number, if somewhat compromised by the lower than expected 157,000 jobs reported for July as well as a downward revision of 50,000 jobs to the combined May and June reports.

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Topics: economic indicators

Takeaways from the July 30, 2018 Ask the Regulators Webinar - Part 4

By: Zach Englert Aug 31, 2018 9:40:19 AM

The July 30 installment of the “Ask the Regulators” series included speakers from the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the U.S. Securities and Exchange Commission (SEC), the Conference of State Bank Supervisors (CSBS), and the Financial Accounting Standards Board (FASB). The goals of the session were to:

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Topics: CECL

CECL Accounting: The good, the bad, and the complex (Update)

By: Brandy Aycock Aug 28, 2018 11:41:05 AM

Financial institutions have complexity on their minds as they confront the transition to the new Current Expected Credit Loss (CECL) accounting standard for loan-loss estimates. Indeed, a recent survey found that nearly eight out of ten financial professionals cited increasing complexity and increase in demand on internal resources, including staff, as two of their biggest challenges in the move to CECL. 

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Topics: CECL

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