Current Expected Credit Loss Model (CECL)
Moody’s Analytics credit risk data, models, economic forecasts, advisory services, and infrastructure solutions support implementation of the Current Expected Credit Loss (CECL) model, the new Financial Accounting Standards Board (FASB) standard for estimating credit losses on financial instruments.
CECL, which governs recognition and measurement of credit losses for loans and debt securities, presents several challenges for institutions trying to determine how to measure expected credit losses.
Financial institutions transitioning to CECL need robust systems to aggregate data, calculate expected credit losses, derive provisions, and report on key risk drivers. For many institutions, the process to calculate and approve the allowance will also change. Furthermore, CECL might require the use of additional data, more refined credit risk models, and greater internal modeling resources.
The Moody's Analytics Credit Loss and Impairment Analysis Suite provides solutions for the most crucial aspects of the impairment calculation process and can support various approaches taken by small and large institutions for estimating losses.
Expertly developed economic scenarios and comprehensive, granular data
CECL requires institutions to account for forecasts of future economic conditions, using internal or third-party economic scenarios. Our team of economists provides standard and bespoke macroeconomic data, forecasts, and scenarios to help you at every step of this process.
Moody’s Analytics also provides comprehensive and granular credit risk and financial data to help capture and collect historical data for each exposure in the portfolio. When combined, these datasets create a powerful foundation on which to develop loss estimation models, quantitative credit risk models, and benchmarking.
Best-in-class modeling, analytical expertise and powerful impairment calculation software
Our solutions offer standard and customizable credit risk rating models for major asset classes. Modify existing models to extend forecasting horizons or implement internally developed or off-the-shelf models for forward-looking estimates of credit risk throughout the life of the exposure.
Impairment calculation software helps reduce manual processes and ensure that calculations are carried out in a controlled environment with auditability, reporting, and archiving capabilities. Enhancing governance and controls over the impairment calculation process helps facilitate the flow of information to managers and auditors of uncertainties around estimates and their impact on financial statements. The calculation environment supports workflow and overlay management for model governance and integrates the scenarios, data, models and provision calculations to ensure interactivity and auditability.
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
A well-recognized researcher in the field; offers many years of experience in the real estate ﬁnance industry, and leads research efforts in expanding credit risk analytics to commercial real estate.
Leverages deep expertise of macroeconomic forecasting and consumer credit modeling to advise executives on stress testing and CECL/IFRS 9.
Streamline your reserve calculation process and feel confident that you are exercising a consistent and comprehensive allowance for loan and lease losses.
CECL Data Solutions - Historical Backfill
CECL Data Solutions - Historical Backfill provide a full loan-level dataset across multiple asset classes.
Economic Scenarios for Current Expected Credit Loss (CECL) Model
Moody’s Analytics produces defensible scenarios to help clients address their CECL compliance.
CECL Solver for Moody’s CreditCycle™
CECL Solver for Moody’s CreditCycle solution enables users to generate forecasts of lifetime losses through custom econometric models under the CECL standard for “reasonable and supportable” economic scenarios
Expected Consumer Credit Losses (ECCL) Service
Consumer lifetime loss forecasts under the CECL standard using “reasonable and supportable” economic scenario
Moody's CreditCycle solution provides econometric consumer credit loss forecasting, benchmarking, and stress testing models.
Mortgage Portfolio Analyzer
This powerful risk management, stress testing, and capital allocation tool helps you analyze the credit risk of residential mortgage portfolios and RMBS collateral.
Credit Loss and Impairment Analysis Suite
Moody’s Analytics Credit Loss and Impairment Analysis Suite of credit risk models and data, economic forecasts, advisory services, and infrastructure solutions assists with expected credit loss calculations.
The CreditEdge tool is the premier model for managing the credit risk of your portfolio of listed firms and sovereigns, globally.
Default & Recovery Database
The Default & Recovery Database provides access to the most comprehensive default dataset in the market.
Global Economic Data & Forecasts
Leverage economic, demographic, and financial data, forecasts, and scenarios for the global economy.
ImpairmentStudio™ for CECL
Moody’s Analytics ImpairmentStudio solution enables financial institutions to address the operational complexities of evolving credit impairment accounting standards, including CECL.
Moody’s Analytics RiskBench solution is a global credit risk data community and data discovery platform that provides in-depth analytics and peer insights.
Moody's Analytics RiskCalc solution offers a comprehensive approach to assessing the default and recovery of private firms.
Structured Finance Portal Regulatory Module
The Regulatory Module helps banks and financial institutions meet their structured finance regulatory needs.