Current Expected Credit Losses Policy
This Current Expected Credit Losses Policy Template (CECL Policy Template) is for a bank, credit union, fintech company, or other type of financial institution to maintain an adequate methodology for estimating and maintaining allowances for credit losses to properly reflect an accurate financial position of the organization and to comply with regulatory and Financial Accounting Standards Board (FASB) guidelines.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Responsibility – Topic 3
- Risk Management – Topic 4
- Measurement of ACLs for Loans, Leases, HTM Debt Securities, and Off-Balance-Sheet Credit Exposures – Topic 5
- Measurement of ACLs for Available-for-Sale Debt Securities – Topic 6
- Use of Vendors – Topic 7
- Portfolio Segmentation – Topic 8
- Qualitative Adjustments and Systematic Allowance Processes – Topic 9
- Recommendations, Documentation and Approval – Topic 10
- Audit Policy – Topic 11
- Staff Training – Topic 12
- Retention of Documentation – Topic 13
Recent updates to this product:
Joint Release – Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023)
OCC Bulletin 2022-20 – Accounting: Bank Advisory Series Updated – Accounting Standards Update (ASU) 2022-02 – “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”
This Current Expected Credit Losses Policy Template (approximately 27 pages) is available in Microsoft® Word format.
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