The Financial Accounting Standard Board’s (FASB) new risk-sensitive accounting requirement, Current Expected Credit Loss (CECL), is challenging financial institutions of every size due to implementation of complex manual processes and cost.
Because CECL replaces the incurred loss approach with the requirement to calculate the expected lifetime loss at any point in time, compliance entails significant, time-consuming changes at every step of the allowance calculation process.
CECL is likely to compel banks to increase their credit-loss reserves significantly, which could lessen how much they can lend to companies and individuals.
AxiomSL’s end-to-end CECL solution on ControllerView provides the flexibility and auditability required by accounting and risk functions.
Powered by the CECL edition of AxiomSL’s extensible CreditView data dictionary, the solution enhances banks’ ability to satisfy regulatory requirements and strengthens risk perspectives enterprise wide.