2008 and CECL - Credit Management Source

Why financial institutions are rethinking 2D risk rating models

Abrigo

APRIL 8, 2025

This article covers these key topics: The difference between 1D and 2D risk rating models How CECL has impacted the necessity of a dual approach Why the LGD variable is so difficult to pinpoint Does your risk rating framework align with your CECL needs? Transform CECL data into stress testing insight. Let me explain.

CECL

CECL Credit Unions Credit Risk Default

The most popular CECL, ALM, & portfolio risk blogs of the year

Abrigo

DECEMBER 22, 2023

The most-read portfolio risk blogs in 2023 Probability of default, CECL model validation, and stress testing were among Abrigo's top blogs on ALM, CECL, and portfolio risk this year. Those read most often in the past year include several that offer practical advice for operating ALM and CECL models.

CECL

CECL Credit Unions Default Credit Risk

FASB: No Delay for CECL Implementation Date

Abrigo

FEBRUARY 11, 2022

Firm deadline for CECL implementation set As expected, the FASB agreed to uphold CECL’s 2023 implementation date. You might also like " CECL Streamlined: A Webinar Series for 2023 Adopters". Takeaway 1 The FASB agreed to uphold the 2023 implementation date for those that haven’t yet adopted the CECL standard.

CECL

CECL Credit Unions Credit and Collections

CECL Kickstart Questions Answered

Abrigo

APRIL 7, 2022

Experts answer CECL questions from 2023 adopters Participants in Abrigo's CECL Kickstart webinars asked consultants their questions leading up to the 2023 CECL implementation date. Takeaway 1 Financial institutions brought practical questions to Abrigo consultants during the CECL Kickstart webinar. . CECL Deep Dive.

CECL

CECL Credit Unions Default Credit Risk

A Tale of Two Models: How the Pandemic Affected Allowance Levels Under CECL and Incurred Loss Models

Abrigo

JULY 28, 2021

Takeaway 1 Allowance levels jumped in Q1 2020 for SEC filers due to the transition to CECL and the start of the pandemic, but FIs began releasing reserves in Q1 2021 as conditions improved. In 2020, most SEC-filing institutions were required to move to the new current expected credit loss, or CECL, model. Haven't adopted CECL yet?

CECL

Opacity vs. Transparency at the Federal Reserve Stress Testing Conference

Abrigo

JULY 19, 2019

If a bank failed just under the new $100 billion threshold, it would represent the most significant failure in history, except for Washington Mutual (which failed in 2008 with total assets of $307 billion). Portfolio Risk & CECL. A Practical CECL Action Plan for Credit Unions. Portfolio Risk & CECL. Whitepaper.

CECL

CECL Credit Unions

CRE risk management: Identify and manage concentration risk

Abrigo

FEBRUARY 14, 2024

For example, during the 2008 Subprime Mortgage Crisis, commercial real estate prices fell drastically by 30 percent year over year. This indicator could be utilized as a benchmark point in stress testing practices to showcase a decline in collateral value representative of a historical recession.

CECL

CECL Credit Risk Credit Unions

Best Practices for Managing Credit Risk in Recession

Abrigo

AUGUST 5, 2020

Key Takeaways This recession is significantly different than the 2008 financial crisis, creating a unique credit environment for financial institutions. This recession is significantly different than the 2008 financial crisis, creating a unique credit environment for financial institutions. Portfolio Risk & CECL. Learn More.

Credit Risk

Credit Risk CECL Credit Unions Default

How Stress Test Results Can Yield Better Lending, Credit, and Risk Decisions

Abrigo

NOVEMBER 8, 2019

Following the 2008 financial crisis, financial institutions were required to examine loan portfolios more closely in order to plan appropriately for adequate capital levels, especially in unfavorable economic conditions. CECL-Compliant Calculations you don't have to second guess? Portfolio Risk & CECL. CECL Accounting.

CECL

CECL Credit Unions Credit Risk

Error-free work - Is it time to move past the spreadsheet?

Abrigo

AUGUST 4, 2017

The above question is being asked by financial managers at banks and credit unions as the implementation of the FASB’s current expected credit loss model ( CECL ) approaches. It is critical for financial institutions to prepare for the effects that CECL will bring to their current spreadsheet based model.

CECL

CECL Credit Unions Default

On Spreadsheet Day 2019, Celebrate the App, But Acknowledge Its Limitations

Abrigo

OCTOBER 17, 2019

CECL-compliant calculations you don't have to second guess? Indeed, a 2008 analysis of multiple studies found that 88 percent of spreadsheet documents audited in those contained errors. Portfolio Risk & CECL. Now that's big. Request a Demo. The problems with spreadsheets. Credit Risk. Learn More. Learn More.

CECL

CECL Credit Unions Credit Risk

Global cash flow analysis – common mistakes & helpful hints

Abrigo

APRIL 19, 2022

As the OCC’s Internal Guidance from April 9, 2008, explains: An analysis of the guarantor’s global cash flow should consider inflows, as well as both required and discretionary cash outflows from all activities. Portfolio Risk & CECL. Lending & Credit Risk. Global cash flow analysis – common mistakes & helpful hints.

Credit Risk

Credit Risk CECL Credit and Collections Transactions

New Year’s Resolutions to Grow Your Financial Institution in 2020

Abrigo

DECEMBER 19, 2019

In 2008, there were 7,061 FDIC-insured commercial banks in the U.S. Portfolio Risk & CECL. Attain growth through M&A, new partners. Throughout the decade, one of the biggest changes occurring within the banking industry has been the consolidation of financial institutions. Fraud Prevention. Learn More. Asset/Liability.

Credit Unions

Credit Unions Credit Risk CECL

Q2 Sees Historic Decline in GDP

Abrigo

JULY 30, 2020

GDP drop in the fourth quarter of 2008. The latest results mark the sharpest decline in GDP in post-war history. To compare the magnitude of the current situation, the worst quarter during the Great Recession was an 8.4% It was blamed for a drop of about 15% in the Dow in the second half of 1957.

Credit Risk

Credit Risk CECL

Making Qualitative Adjustments and Stress Testing in Uncertain Economic Times

Abrigo

JUNE 19, 2020

The 2008 financial crisis exposed significant weaknesses of relying on incurred losses. In response, the FASB replaced the standard with the current expected credit loss (CECL) model to allow for more timely adjustment of reserve levels. Save time on CECL calculation and documentation. CECL vs. ILM. learn more.

CECL

CECL Credit Risk

SVB: Early lessons for all financial institutions from Silicon Valley Bank’s failure

Abrigo

MARCH 13, 2023

Historic collapse SVB is different from other financial institutions The FDIC closure and assumption of Silicon Valley Bank (SVB) – the largest bank failure since 2008 – is a stark reminder that when a crisis occurs, it can spread as fast as a wildfire in dry fields with a strong wind.

CECL

CECL Credit Risk Credit Unions

Credit Management Source

Why financial institutions are rethinking 2D risk rating models

The most popular CECL, ALM, & portfolio risk blogs of the year

Trending Sources

FASB: No Delay for CECL Implementation Date

CECL Kickstart Questions Answered

A Tale of Two Models: How the Pandemic Affected Allowance Levels Under CECL and Incurred Loss Models

Opacity vs. Transparency at the Federal Reserve Stress Testing Conference

CRE risk management: Identify and manage concentration risk

Best Practices for Managing Credit Risk in Recession

How Stress Test Results Can Yield Better Lending, Credit, and Risk Decisions

Error-free work - Is it time to move past the spreadsheet?

On Spreadsheet Day 2019, Celebrate the App, But Acknowledge Its Limitations

Global cash flow analysis – common mistakes & helpful hints

New Year’s Resolutions to Grow Your Financial Institution in 2020

Q2 Sees Historic Decline in GDP

Making Qualitative Adjustments and Stress Testing in Uncertain Economic Times

SVB: Early lessons for all financial institutions from Silicon Valley Bank’s failure

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