Current Expected Credit Loss (CECL) Accounting: Radical Changes Ahead
- Date:August 09, 2018
- Author(s):
- Brian Riley
- Research Topic(s):
- Credit
- PAID CONTENT
Overview
Prepare for changes in credit card loss accounting as conservative requirements go live in December 2019.
A new Financial Accounting Standards Board (FASB) rule requires credit card issuers to shift from Allowance for Loan and Lease Loss (ALLL) measure to account modeling, which will increase credit loss expenses and further diminish credit card profitability.
Book a Meeting with the Author
Related content
Honor All Cards: The U.S. Credit Card Model Takes a Hit
The Honor All Cards principle—that any merchant with a Visa and/or Mastercard sticker in the window accepts all card products on those networks—could be undermined by a recent sett...
2026 Credit Payments Trends
The U.S. credit card market is healthy and strong, but performances among banks diverge along size lines. Large issuers have been able to better curate their customers through acqu...
Young Borrowers: Riskier Than Ever...and the Future of Credit Cards
The future of credit cards rests with younger consumers, in the 18-to-29 age range, and not with their parents and grandparents. Here’s the rub, though: These consumers are a much ...
Make informed decisions in a digital financial world