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
Co-Branded Credit Cards Smoke, Private Labels Choke
Co‑branded credit cards thrive when financial institutions and consumer brands join to create value neither could deliver alone. When designed well, these partnerships fuel custome...
2026 Credit Card Risk: Happy Days are Here Again (For Top Issuers)
The year bodes well as 2026 approaches the end of the first quarter. Economic indicators are strong, the credit card market is growing at a healthy rate, and credit cards rem...
Credit Card Databook 2026
The credit card market, which appeared to be a candidate for saturation in recent years, continues to grow amid a resilient economy. Purchase volume reached $1.28 trillion in 2025,...
Make informed decisions in a digital financial world