Current Expected Credit Loss (CECL) Accounting Change
In This Section
The Current Expected Credit Loss (CECL) accounting standard will have a substantial impact on CRE lenders.
Overview: The current expected credit loss (CECL) accounting standard expected loss methodology requires institutions to calculate and recognize the lifetime expected loss of the loan at origination. CECL implementation will have both capital and operational impacts. MBA recommends that CECL implementation be delayed pending a quantitative impact analysis to assess the macroeconomic and public policy implications, and to allow for the consideration of potential alternatives and post-issuance field testing. MBA is also working with members to facilitate and support transition to the new CECL accounting standard.