Episode

Checking up on CECL

Podcast
The Banker Next Door
Published
Jul 3, 2026
Duration seconds
1027
Processing state
not_requested
Canonical source
https://joeberq.podbean.com/e/checking-up-on-cecl/
Audio
https://mcdn.podbean.com/mf/web/d96avc98rpfgdmax/Checking_up_on_CECL8xonj.mp3
JSON
/v1/public/podcasts/the-banker-next-door-6597036/episodes/checking-up-on-cecl
Markdown
/podcast/the-banker-next-door-6597036/checking-up-on-cecl.md

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Summary

This is a great time for your bank to treat the 2Q CECL cycle as a ‘health check’ on the process. Consider questions such as: has anything changed in our portfolio and macro view? How did your ACL move from quarter to quarter? Do we need to consider any changes to our key assumptions and qualitative factors? Other components to review third-party models, overlays, qualitative factors, documentation, ALCO, and credit risk. Additional consideration, is your bank telling one story? Is credit, ALCO, risk, stress testing, and the Board all in sync with the same narrative? Finally, what should your bank be focusing on for the rest of 2026 and 2027? Refresh qualitative frameworks, clarify governance management of overlays, document how vendor models are configured, streamline CECL documentation, and use board and committee packages to connect CECL outcomes to the broader risk and performance picture. This episode examined a blog post from PCBB titled “CECL: Turning interest rate volatility into a governance check.” A link to the blog post is included below. Link: CECL: Turning Interest Rate Volatility into A Governance Check