Currency
The CECL Handbook: A Practitioner's Guide
£145.00
The CECL model implementation requirement arguably represents one of the most influential changes to accounting standards which financial institutions have ever seen. The new standard may upend many business areas within an organisation, affecting loan origination, commercial policies, and portfolio strategy and management, to name but a few.
Financial institutions have to implement the CECL accounting standard by January 1, 2023. The CECL Handbook; A Practitioner’s Guide is the reference book for 2023 adopters and a great training manual for staff within banks that have already adopted.
The team of editors – comprising several senior directors from Moody’s Analytics – Masha Muzyka; Laurent Birade; Yashan Wang; and former head of Research, Jing Zhang, have brought together a unique group of experts experienced in preparing and implementing the new CECL model.
Availability:
In stock
ISBN
9781782724339
The CECL model implementation requirement arguably represents one of the most influential changes to accounting standards which financial institutions have ever seen. The new standard may upend many business areas within an organisation, affecting loan origination, commercial policies, and portfolio strategy and management, to name but a few.
Financial institutions have to implement the CECL accounting standard by January 1, 2023. The CECL Handbook; A Practitioner’s Guide is the reference book for 2023 adopters and a great training manual for staff within banks that have already adopted.
The team of editors – comprising several senior directors from Moody’s Analytics – Masha Muzyka; Laurent Birade; Yashan Wang; and former head of Research, Jing Zhang, have brought together a unique group of experts experienced in preparing and implementing the new CECL model.
Set out over three sections this book provides a comprehensive instructional guide, covering key assumptions, requirements and challenges for different asset types as well as different stakeholders in the process such as auditors, management, investment analysts and regulators. The book also considers the downstream processes impacted by the new implementation and guidance.
PART I: REQUIREMENTS: describes the CECL requirements and presents an overview of the most impactful challenges encountered during initial implementation both from an auditor’s and a banker’s perspective.
PART II: INDUSTRY IMPLEMENTATION PRACTICES: discusses specific industry-implementation practices.
PART III: BUSINESS IMPACTS AND IMPLICATIONS: explores how institutions need to think through the impact on processes such as portfolio management, origination and loan pricing, as well as provides tips for becoming better at data-driven decision making.
The new standard’s impacts are wide and far-reaching, it is an understatement to say that the forward-looking CECL standard is a game-changer and this book provides readers with a roadmap to effective credit risk measurement and management which complies with the new accounting standard.
| ISBN | 9781782724339 |
|---|---|
| Navision code | MCEC |
| Publication date | April 12th, 2021 |
Write Your Own Review
Laurent Birade, Masha Muzyka, Yashan Wang, and Jing Zhang
Laurent Birade is a senior director responsible for providing risk and finance integration expertise across solutions, products and services offered by Moody’s Analytics in the US and Canada. As a domain expert in financial services since 2005, he has accumulated a wealth of knowledge on the effective integration of risk and finance processes. Laurent has participated in a variety of imple- mentation projects in the US and Canada, and has advised financial institutions on key regulatory issues such as CCAR, DFAST, and IFRS 9 and CECL credit loss reserving. Laurent has published on a broad range of topics, such as operational risk, risk-based pricing and stress testing practices, and has written numerous articles on the new allowance standards (IFRS and CECL). Laurent holds a bachelor of accounting/MIS from HEC and an executive MBA from St Mary’s College of California, and is a member of PRMIA, of which he is also an acting steering committee member for San Francisco and Vancouver.
Masha Muzyka is a senior director at Moody’s Analytics, where she leads a team of senior domain experts in risk and accounting in the US. Masha works with a variety of clients, including banks, credit unions, insurance firms and corporates, solutioning for risk and finance integration processes. Masha is a leading accounting expert on CECL at Moody’s Analytics, assisting clients in solutions implementation, coordinating solution integration offerings, providing thought leadership and advisory. Prior to joining Moody’s Analytics, Masha developed strategic relationships with regional and community banks at a fintech company, where she managed a team of product and solution design experts to ensure customer needs were met through software products and services. She also spent eight years in banking and financial services industry specialising in audit and technical accounting policy. Masha is a frequent speaker at various industry conferences covering CECL and its implementation, and she has published a breadth of diverse work on the topic. She holds a bachelor of economics degree from Moscow State University, a CPA licence in Virginia, and is a member of AICPA.
Yashan Wang is a senior director at Moody’s Analytics, where he heads the research and quantitative modelling team for portfolio valuation, accounting and balance-sheet analytics. He has broad experience in quantitative finance in banking, credit portfolio modelling and derivative pricing, and has led research initiatives in developing and integrating models to calculate impairment under IFRS 9/CECL/SAP across asset classes. Yashan has also worked with global clients, providing training and advice on enter- prise risk management, asset and liability management, and stress testing. Prior to joining Moody’s Analytics, he was an assistant professor at the MIT Sloan School of Management. Yashan’s work has been published in leading academic and industry journals, including The Annals of Applied Probability and the Journal of Banking and Finance. He earned a BS in electrical engineering from the University of Science and Technology of China and a PhD in management science from Columbia University.
Jing Zhang conducts research and teaching on modelling the finan- cial impacts of climate change and environmental risk. From 2009 to January 2021, he was a managing director and the global head of Moody’s Analytics Research and Modelling Group. Jing joined the research team at the former KMV in 1998, eventually becoming a director in the Research Group, where, besides managing research operations, he made major contributions to a number of KMV quantitative models. Since then, he has held a number of senior roles in product management and the Client Solutions Group, and has many years of experience advising clients on risk management issues. Jing was a lecturer for the Master of Financial Engineering program at the University of California, Berkeley, from 2010 to 2012, and served as an associate editor of The Journal of Credit Risk from 2016 to 2020. His research papers have been published in both academic and industry journals, including the Journal of Time Series, the Journal of Fixed Income, the Journal of Credit Risk, and the Journal of Risk Model Validation. He has also edited a number of books, including Managing Climate Risk:A Practical Guide for Financial Institutions (forthcoming 2021); Credit Risk Measurement and Management: Disruption and Evolution (with Amnon Levy); The New Impairment Model Under IFRS 9 and CECL; and CCAR and Beyond, all published by Risk Books. Jing obtained a PhD from the Wharton School of the University of Pennsylvania and an MA from Tulane University.
About the Editors ix
About the Authors xiii Abbreviations xxiii Acknowledgements xxvii
PART I: REQUIREMENTS
1 An overview of CECL: setting the context
Graham Dyer, Grant Thornton LLP
2 Outlining the most impactful assumptions and challenges under CECL: an auditor’s view
Benjamin Havird, PwC
3 Outlining the most impactful assumptions and challenges under CECL: a banker’s view
Dylan Adams and Diane Menzo, Flagstar Bank
PART II: INDUSTRY IMPLEMENTATION PRACTICES
4 A banking industry perspective on key CECL decisions
Mike A. Shearer, PwC
5 Challenges and solutions for wholesale portfolios
Jimmy Yang and Kenneth Chen, BMO Financial Group; EY
6 Challenges and solutions for retail mortgage portfolios
Joshua Wander, Northwest Bank
7 Challenges and solutions for retail credit card portfolios
Jason Eckhardt, American Express
8 Challenges and solutions for student loans
Tom Russo, Sallie Mae
9 Challenges and solutions for securities portfolios
Dima Babykin, Transamerica
10 The evolution of purchased loan accounting: from FAS 91 to the CECL transition
Michael W. Brown, Hilltop Holdings Inc
11 Challenges and solutions for qualitative allowance
Isidore Verla, First Citizens Bank
12 Challenges and solutions: an auditor’s point of view
Joseph D. Bielecki, KPMG
13 Early view of CECL integration into stress testing:practical approaches
Ken Carson and Francisco Covas, Umpqua Bank; Bank Policy Institute
14 Too many cooks in the kitchen: mastering the art of managing CECL volatility
Cristian deRitis and Christopher Stanley, Moody’s Analytics
PART III: BUSINESS IMPACTS AND IMPLICATIONS
15 Beyond CECL: rethinking bank transformation
Christopher Stanley, Moody’s Analytics
16 Data collision: efficient lending under CECL
John Toohig, Raymond James
17 Cutting through the hype: how CECL is impacting investor views of procyclicality, credit analysis and M&A
Saul Martinez and Catherine Mealor, UBS; Keefe, Bruyette and Woods
18 Concentration risk: the CECL magnifying glass
Amnon Levy, Pierre Xu and Masha Muzyka, Moody’s Analytics
19 Closing thoughts
Laurent Birade, Masha Muzyka, Yashan Wang and Jing Zhang, Moody’s Analytics