- Why do some of the choices of CECL design components introduce significant inaccuracy and procyclicality in banks’ provisions?
- How can scenario selection in particular result in inaccuracy in ECL with implications for pricing and profitability?
- How should a bank integrate CECL with other aspects of management?
- What is the primary challenge of CECL for banks?
For answers to the above questions together with a case study, please read our article in the February 2020 issue, pp. 70-75, of the The Risk Management Association Journal.
https://www.rmahq.org/journalcurrentissue/