The current expected credit losses standard, or CECL, had been hotly debated in banking and accounting circles long before COVID-19 surfaced earlier this year. While the resulting market and economic disruptions caused by the pandemic delayed a full rollout of CECL, many financial institutions that had begun the hard work of incorporating the standard into their models are living through a real-life stress test of CECL’s approach to accounting for credit losses.
In this episode of the Financial Executive Podcast we speak with Amnon Levy, managing director and head of Moody’s Analytics Portfolio and Balance Sheet Research group regarding what the current financial crisis reveals about financial credit models and the unintended consequences of CECL.
Or subscribe
