DFAST and CECL Integration:
Understanding Similarities and Differences

The objective of this whitepaper is to analyze similarities and differences in credit loss computations required under DFAST and CECL guidelines. This document has been written to help Community Banks which are about to cross $10 billion in asset size, by identifying the common areas for development under DFAST and CECL.


Stress Testing : Transition to DFAST compliance

The objective of this document is to explain the challenges related to stress testing that arise when a Community Bank crosses $10 Billion in consolidated asset size. It explains the implications and recommends precise action.


Application & Comparison of Expected Loss Methodologies

This paper is first of two-part series where we will discuss various CECL methodologies and their application. The objective of first-part paper is to understand various methodologies for calculating expected loss and factors considered for selecting appropriate methodology for a pool.


CECL – Cost Benefit Analysis

A lot of banks are wondering what will it cost to implement CECL guidelines. This is the only detailed cost-benefit study related to CECL implementation focused on community banks. Banks can refer to this study to understand their choices when it comes to CECL – in-house, third-party vendor or buying a solution – and the associated costs/benefits with each option.


CECL – Start Preparing Now

Most banks have time till 2019 to comply with CECL guidelines. While that seems far away, the truth is quite the opposite. Implementing CECL requires extensive data going back 3 to 5 years and banks need to do a parallel run with existing ALLL methodologies to plan ahead for the one-time hit on capital. Banks starting early will clearly have a competitive advantage.


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