Current Expected Credit Loss

Are you CECL Ready ?

All banks, credit unions and other financial institutions need to comply with current expected credit loss (CECL) compliance. SEC – Filing institutions should be ready by 2020  and non – SEC Filers by 2021.

You can become CECL compliant with Tesser Analytics Platform – the cloud based, subscription solution that requires no change to your technology infrastructure.

What

CECL is being referred to as the biggest accounting standards change in years. It requires more data, statistical modeling, model validation, comprehensive documentation and reporting capabilities.

Who

All lenders, regardless of size, are required to comply. If you adhere to the U.S. GAAP (generally accepted accounting principles), you’re likely covered under the CECL requirement.

When

All SEC filers must be CECL compliant by Dec. 15, 2019; non-SEC filers by Dec. 15, 2020. For SEC filers with a calendar-based fiscal year, the standard goes into effect on Jan. 1, 2020, and the new standard must be applied in financial statements and regulatory reports for the quarter ending March 31, 2020.

Solution

Tesser CECL Credit Loss solution is an integrated, flexible, end-to-end solution designed for any financial entity. It provides a seamless way to estimate CECL reserves and generate reports without requiring major technology setup or integration. From data preparation through the creation of auditable regulatory reports, this tool will help you meet tight implementation timelines around the intricate provisions of the CECL rule.

Why use Cloud based CECL Credit Loss solution?

This solution combines the expertise of multiple industry leaders. Leveraging our shared capabilities has enabled us to develop a solution that supports loss forecasting for medium sized financial institutions to the smallest credit unions.

Tesser combines the breadth depersonalized data sourced from its consumer credit databases for developing CECL models and incorporates their deep domain expertise in accounting, risk and regulatory processes to develop the CECL solution.

TESSER CECL COMPLIANCE METHODOLOGY

Identification

Quantification

Response & Disclosure

Identification

Data Load

  • Assets
  • Liabilities
  • Market Data
  • Economic Data
  • Complainance Documents
  • Other Source Data

Data Integrity

  • Data Cleansing
  • Consolidations
  • Reconciliation
  • Complete
  • Appropriate
  • Accurate

Quantification

Compute

  • Valuations
  • Cash Flows
  • Sector Loss
  • Deterministic
  • Stochastic
  • Indicators

Aggregate Types

  • Health Operational
  • Market Credit
  • Sector Loss
  • Strategic
  • Life & Non-Lif

 

Response & Disclosure

Dashboard

  • Compliance Regulatory
  • Internal Reporting
  • Key Indicators

Model Refinement

  • Risk Based Decision Making
  • Investment Strategy
  • New Product Launches

CECL Data Lake

Data Ingestion, Storage, Security and Audit Functionalities