CECL Model Validation

The "Current Expected Credit Losses (CECL)" document by NETBankAudit provides an overview of the CECL standard and its impact on financial institutions. It explains the methodology for estimating credit losses, emphasizing the use of historical data, current conditions, and forward-looking information. The document highlights key considerations for implementing CECL, such as data collection, modeling approaches, and regulatory compliance. By adopting a robust CECL framework, institutions can enhance risk management and ensure accurate credit loss forecasting in line with regulatory expectations.