Sageworks poll: One-third of bankers haven’t started preparing for new CECL standard
What actions are being taken by your institution?
RALEIGH, NC (July 26, 2016) — One-third of respondents from banks and credit unions polled by Sageworks have not taken action in preparing for the Financial Accounting Standards Board’s finalized Current Expected Credit Loss (CECL) standard, according to a new survey results.
Sageworks, a financial information company that provides loan portfolio and risk management solutions to banks and credit unions, conducted the poll during a July 7th round table webinar, The Final CECL Standard. The multi-select poll question asked attendees what actions are being taken at their institution now that CECL has been issued. According to responses from 407 individuals across the country, 22 percent said they have not taken any action just yet, and 11 percent said they aren’t sure where to start. However, 53 percent said they have been reading through the CECL standard, and another 64 percent have been discussing CECL within their institution.
“The 22 percent that haven’t taken action yet is not that surprising in light of over 64 percent of respondents are doing something for an event four years away,” says Sageworks Senior Risk Management Consultant Rob Ashbaugh.
For those who are unsure on where to begin, Ashbaugh explains that the best first step is gathering a few people who are affected by the ALLL (credit, risk, audit, CFO, IT) and form a working committee. This committee should start by reading the regulation and asking questions. After that, understand if you have the data necessary to do a calculation and if so, can you store it somewhere for future reports?
“The next three to four years will be here and gone before you know it. Those that haven’t taken action yet should start discussing their next steps now.”
About Sageworks
Sageworks offers banks and credit unions lending, credit risk and portfolio risk software to efficiently grow and improve the borrower experience. By automating the life of the loan with Sageworks, bankers book commercial loans faster and reduce risk. Sageworks uniquely provides integrated solutions and industry expertise to more than 1,400 financial institutions that achieve an average 38% higher loan growth than peers. Visit www.sageworks.com to learn more.
The Risk Management Summit
The Risk Management Summit is the premier conference for bank and credit union executives focused on portfolio risk management. Join peers and industry experts in Austin, TX, for the latest news and best practices on the FASB’s CECL model, the ALLL calculation and stress testing.
For more information about the Risk Management Summit, visit sageworks.com/summit or complete the online registration form.
