The year 2019 will be a busy one for all US Banks. With banks, standardsetters and regulators still engaged in a debate about what implementation of the CECL standard for Day 1, there are only 11 month left before public firms “go live” on CECL. The principle-based nature of the standard means that the remaining time needs to be spent on testing assumptions and validating approaches. For many banks, attention is on finalizing implementation plans and to kick-start the parallel run.
GCD has partnered with Accenture and the IIF to help U.S. financial institutions benchmark their CECL models in this critical phase and beyond Day 1 compliance.
We offer all financial institutions (global banks, community banks, regionals banks, specialty financer, insurers, ...) to benchmark their ECL estimates on a standardized portfolio. Implementation of similar approaches (e.g. IFRS 9) proved that it is important to not stay siloed: knowing where your ECL estimations are in comparison to your peers allow you to act fast and ahead of the game.
The excercise will include various scenarios, including a stress scenario. In the last weeks, a core group of banks has designed the template, tailored it to the US market and developped the roadmap for 2019. More information can be found here