Sageworks poll: Most bankers expect to use third-party vendors, advisors for CECL

  • Banking
  • 30.10.2018 06:39 am

A majority of bankers expect their financial institutions to use third-party vendors or a combination of advisors and third-party vendors to help them implement the Current Expected Credit Loss model, or CECL, according to an informal poll released by Sageworks and MST.

During a CECL Panel webinar hosted by the firms, 315 bankers were asked how their institutions plan to implement CECL, the Financial Accounting Standards Board’s new requirements for accounting for credit losses. Thirty-seven percent of those polled said they plan to use models developed through advisory services and third-party vendors/products, and 33 percent said they plan to use an external product alone. In other words, more than two-thirds of those polled will rely on external models rather than internally prepared models.

Only 15 percent plan to rely solely on their own resources, and another 13 percent will use a combination of in-house and advisory prepared models. None of those polled planned to completely outsource the CECL implementation to an advisory services firm.

 

A majority of bankers expect their financial institutions to use third-party vendors or a combination of advisors and third-party vendors to help them implement the Current Expected Credit Loss model, or CECL, according to an informal poll released by Sageworks and MST.

During a CECL Panel webinar hosted by the firms, 315 bankers were asked how their institutions plan to implement CECL, the Financial Accounting Standards Board’s new requirements for accounting for credit losses. Thirty-seven percent of those polled said they plan to use models developed through advisory services and third-party vendors/products, and 33 percent said they plan to use an external product alone. In other words, more than two-thirds of those polled will rely on external models rather than internally prepared models.

Only 15 percent plan to rely solely on their own resources, and another 13 percent will use a combination of in-house and advisory prepared models. None of those polled planned to completely outsource the CECL implementation to an advisory services firm.

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