Safety and Soundness: Current Expected Credit Losses Methodology

June 30, 2017

Don’t wait to start planning for CECL!

The effective date of the standard varies based on an institution’s filing status and classification as a public business entity under GAAP; however, the earliest implementation date allowable will begin in 2019.The following table provides a summary of the effective dates, depending on an entity’s characteristics:


U.S. GAAP Effective Date

Regulatory Report Effective Date*

Public Business Entities (PBEs) that are SEC Filers

Fiscal years beginning after 12/15/2019, including interim periods within 2020


Other PBEs (Non-SEC Filers)

Fiscal years beginning after 12/15/2020, including interim periods within 2021



Fiscal years beginning after 12/15/2020, and interim periods beginning after 12/15/2021


Early Application

Early application permitted for fiscal years beginning after 12/15/2018, including interim periods within those fiscal years

As early as 03/31/2019

*For Institutions with calendar year ends

Over the course of the next year, institutions are encouraged to begin planning and preparing for the new standard.Senior management, under the oversight of the board of directors, should review available industry and regulatory resources and evaluate potential strategies for implementation of the new methodology.Management should begin to assess the institution’s data needs and evaluate the standard’s estimated impact on capital.Institutions are also encouraged to proactively engage their auditors and other service providers in discussions about CECL’s impact.Future supervisory guidance, outreach, and communication will be forthcoming during the implementation period.

For more information on CECL, please review Federal Reserve Supervision and Regulation (SR) letters SR 16-12 and SR 16-19, or contact your designated Reserve Bank Central Point of Contact at (800) 333-1010 or Accounting Specialist Paul Oseland at (800) 333-1010, extension 270-8632.