NCUA publishes March update for simplified CECL tool

Average loan-loss rates for 2021-2023 and the latest life-of-loan, or weighted average remaining maturity, factors are included in an updated “simplified CECL tool” announced Monday by the federal credit union regulatory agency in an “express” email to subscribers.

The March 2024 release of the tool is available to help credit unions using it to determine their credit loss expense, or provision for credit losses, for the quarter that ends March 31, the National Credit Union Administration (NCUA) said.

The CECL (current expected credit loss) accounting standard became effective in 2023 for credit unions with assets of $10 million or more. The Simplified CECL Tool can be downloaded from the NCUA’s website via “The Simplified CECL Tool” page.

The NCUA said credit unions with assets of less than $10 million may also consider using the tool, noting it could provide a more accurate measure of credit losses and enable stronger feedback for loan portfolio management.

The Simplified CECL Tool page

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