Fed: Second CECL tool for community banks to launch June 16

To help community banks successfully implement the current expected credit loss accounting standard, the Federal Reserve next week will launch a second tool, the Expected Losses Estimator. The Fed will launch the spreadsheet-based tool on June 16 during an “Ask the Fed” webinar. Bankers can register for the webinar at AsktheFed.org.

The new tool uses a financial institution’s loan-level data and management assumptions to assist in calculating CECL allowances. The Fed previously released the Scaled CECL Allowance for Losses Estimator, or SCALE, tool to help simplify the CECL calculation for community banks.