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Current Expected Credit Losses (CECL) Methodology

The Financial Accounting Standards Board (FASB) issued a new expected credit loss accounting standard in June 2016. The new accounting standard introduces the current expected credit losses methodology (CECL) for estimating allowances for credit losses. The standard is effective for most SEC filers in fiscal years and interim periods beginning after December 15, 2019, and for all others it takes effect in fiscal years beginning after December 15, 2022.

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 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

Related Links & Resources

Related News and Issuances

04/21/2023 OCC 2023-11 Current Expected Credit Losses: Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023)
04/15/2021 OCC 2021-20 Allowances for Credit Losses: New Comptroller’s Handbook Booklet
10/01/2020 OCC 2020-85 Current Expected Credit Losses: Final Rule