CECL Implementation Case Studies
CECL and DFAST – Accounting versus. Simulation
Learn about a case study referencing the symmetry and critical differences between the new current expected credit loss model for estimating credit losses (CECL) and the Dodd-Frank Wall Street Reform and Consumer Protection Act’s stress-testing (DFAST) requirements.
Although there is no guidance or statutory relationship between CECL and DFAST, their similarities in data requirements and forward-looking projection suggest benefits for financial institutions by coordinating the necessary data management and governance components of their CECL and DFAST initiatives.
In this whitepaper:
- DFAST / CECL similarities and differences
- Risks of programme convergence
- Case study from our field work