CCUL Headlines: Compliance

Sold-out CECL Symposium imparts valuable takeaways for attendees

Wednesday, November 29, 2017   (0 Comments)
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NASCUS in partnership with the Carolinas Credit Union League, and SC and NC state regulators successfully hosted its CECL Symposium on November 7, 2017 in Charlotte, NC. Facilitated by Charlie McQueen of McQueen Financial Advisors, the event shared steps credit unions will need to take to ease into the process of implementing CECL.

Sample Timeline for CECL Implementation:

Start your process for implementation now.

Have your plan in place.

Make it your goal to implement CECL in 2020 so that if there are any bumps, you can fix them before the effective date.

CECL takes effect January 1, 2021

CECL (Current Expected Credit Loss Methodology) represents the most significant change to generally accepted accounting principles (GAAP) in many years and would fundamentally change the way many credit unions will have to calculate the allowance for loan losses (ALL). It will require allowance reserves to be established for estimated “life of loan” losses instead of the current practice of reserving for estimated losses considered probable over the next operating cycle.

Although not going into effect until 2021, most experts are recommending credit unions begin preparing now to change their approach for calculating their allowance to both prepare for the changes and to establish “clean data.”

Key takeaways from the CECL Symposium include:

  • Build the right implementation team: This is paramount to having a successful CECL implementation. Employees from different departments should be included, such as accounting, auditing, IT, loan operations, and credit risk.
  • Document your decisions: Record all decisions your credit union makes throughout the implementation process including the rationale behind each decision, then incorporate these decisions into your accounting policy.
  • The positive impact on small CUs: Small credit unions will be able to adjust their methods instead of using costly and complex techniques.
  • Less reliance on vendors: CECL implementation does not necessarily require the use of third-party vendors.
  • Credit risk practices remain viable: Current credit risk practices can still be utilized.

See additional resources below for more information about CECL or contact the League’s Compliance Department at or 800-822-8859.


Additional Resources:

NCUA, Joint Statement on the New Accounting Standard on Financial Instruments - Credit Losses, June 2016.

NCUA, FAQ on the New Accounting Standard on Financial Instruments – Credit Losses, September 2017.

CUNA, CECL is coming: Are you ready?, April 2017.

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1000 Saint Albans Drive
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Raleigh, NC 27609

800-822-8859 Phone
919-573-0474 Fax


7440 Broad River Road
Irmo, SC 29063

PO Box 1787
Columbia, SC 29202

800-822-8859 Phone
803-732-4268 Fax