Current Expected Credit Losses Policy
This Current Expected Credit Losses Policy (CECL) Policy is for banks, credit unions, fintech companies, or other types of financial institutions to maintain an adequate methodology for estimating and maintaining allowances for credit losses (ACL) 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
This Current Expected Credit Losses Policy (approximately 27 pages) is available in Microsoft® Word format.
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