CECL & Term Probability of Default
FASB’s new accounting standard, ASU No. 2016-13, commonly referred to as “CECL,” will require banks to calculate continual, life-of-loan estimated credit losses on entire commercial & industrial (C&I) portfolios. Although mandatory adoption begins at the end of 2019, this unprecedented change from the longstanding incurred loss model will result in significantly more loan data-collection and analysis than ever before; banks need to begin to develop or enhance models and infrastructure immediately. Rapid Ratings has developed a series of Term Probabilities of Default (PDs), a key requirement for many banks in estimating forward-looking losses. Our Term PDs run 12 months to 10 years on public and private non-financial companies.
Download this whitepaper to understand how you can: