Current Expected Credit Losses Policy
The purpose of this Current Expected Credit Losses Policy Template (CECL Policy Template) is for a bank, credit union, 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 Bank and to comply with regulatory and Financial Accounting Standards Board (FASB) guidelines.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Definitions – Topic 3
- Responsibility – Topic 4
- Measurement Methods – Topic 5
- Measurement of ACLs for Loans, Leases, HTM Debt Securities, and Off-Balance-Sheet Credit Exposures – Topic 6
- Measurement of ACLs for Available-for-Sale Debt Securities – Topic 7
- Use of Vendors – Topic 8
- Portfolio Segmentation – Topic 9
- Qualitative Adjustments and Systematic Allowance Processes – Topic 10
- Recommendations, Documentation and Approval – Topic 11
- Audit Policy – Topic 12
- Staff Training – Topic 13
- Retention of Documentation – Topic 14
Recent updates to this product:
Joint Press Release – Agencies Issue Three Final Rules
Joint Press Release – Federal Financial Regulatory Agencies Issue Interagency Policy Statement on Allowances for Credit Losses and Interagency Guidance on Credit Risk Review Systems
Joint Release – Current Expected Credit Losses: Final Rule with Technical Changes to Interim Final Rule
Joint Release – Agencies Announce Two Actions to Support Lending to Households and Businesses
Additional and Updated Interagency Frequently Asked Questions on the New Accounting Standard on Financial Instruments – Credit Losses
Joint Release – Agencies Allow Three-Year Regulatory Capital Phase In for New Current Expected Credit Losses (CECL) Accounting Standard
This Current Expected Credit Losses Policy Template (approximately 36 pages) is available in Microsoft® Word format.
NOTE: We highly recommend adding a Product Update Protection Plan when placing an order for this product since we anticipate that the federal regulators will be releasing additional guidance during the three-year phase in period as financial institutions continue to adopt the new CECL accounting standard.
Want to ensure your purchase from BankPolicies.com remains current? Add a Product Update Protection Plan to your shopping cart to ensure that you will automatically receive an updated version every time it is revised via e-mail within one year from the last date of purchase. This timely and cost-effective solution ensures that you stay on top of federal regulatory changes and industry recommended best practices.
When updates are made you will receive detailed information regarding why the product was updated and what has changed within the product in our Product Update Notification e-mail correspondence. This enables you to make an informed decision on whether to make any changes to the policy or procedure you implemented for your financial institution from the revised template.
BankPolicies.com provides your financial institution with the best bank policy template products available in the industry. You will always be up to date with the latest changes to bank policies and never have to worry about being out of compliance with the various laws, rules and regulations issued by the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Office of the Comptroller of the Currency (OCC), or other federal regulatory bodies that may apply to your organization.
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