Current Expected Credit Losses (CECL) Methodology

Until the new standard becomes effective, institutions should follow current U.S. GAAP along with the related supervisory guidance on the allowance for loan and lease losses (ALLL).

For more information, please contact the OCC's Office of the Chief Accountant by email at CECL@occ.treas.gov.

CECL Webinar Series

In 2017, the OCC began hosting a series of webinars on CECL. The webinars are for OCC-regulated institutions only. Registration for upcoming webinars and recordings of past webinars are posted on BankNet.

• Part 1: Introducing CECL – March 23, 2017
• Part 2: Implementation Considerations – May 23, 2017
• Part 3: Debt Securities – August 22, 2017
• Part 4: Data and Methods – February 15, 2018
• Part 5: Third-Party Risk Management & CECL - April 26, 2018
• Part 6: Purchased Credit Deteriorated Loans - Prerecorded Webcast
• Part 7: The Halfway Point - October 18, 2018
• Part 8: The Weighted Average Remaining Maturity Method for estimating credit losses – March 7, 2019

Interagency Webinars

• Applying Model Risk Management to CECL Models at Large Banks - September 3, 2019: Invitation (PDF) – For a transcript of the webinar please refer to the Federal Reserve's website.
• Weighted Average Remaining Maturity (WARM) Method – April 11, 2019: Invitation (PDF) – For a transcript of the webinar please refer to the Federal Reserve's website.
• CECL Q&A Webinar for Community Bankers – July 30, 2018: Invitation (PDF) – For a transcript of the webinar please refer to the Federal Reserve's website.

Related Links & Resources

• OCC Bulletin 2023-11, Current Expected Credit Losses: Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023)
• OCC Bulletin 2019-17, Current Expected Credit Losses: Additional and Updated Interagency Frequently Asked Questions on the New Accounting Standard on Financial Instruments - Credit Losses
• Comptroller's Handbook: Allowances for Credit Losses
• FASB Staff Q&A No. 1 - Whether the WARM Method is an Acceptable Method to Estimate Expected Credit Losses
• FASB Staff Q&A No. 2 - Developing an Estimate of Expected Credit Losses on Financial Assets
• ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
• NR 2016-21, Joint Statement on the New Accounting Standard on Financial Instruments - Credit Losses (PDF)