A New Service is Available to Help Credit Unions Cope with CECL
Strategic Link partner Catalyst Corporate Federal Credit Union has launched a new product specifically designed to help credit unions prepare for the adoption of new accounting requirements.
Current Expected Credit Loss — also known as CECL — will have a significant impact on how credit unions account for expected credit losses in the future. CECLution is a robust, self-directed, online platform built upon the financial know-how of Catalyst Strategic Solutions, a wholly owned subsidiary of Catalyst Corporate.
“With CECL requirements set to take effect in January 2023, credit unions should be evaluating solutions and determining the most appropriate type of modeling now,” said Mark DeBree, Managing Principal of Catalyst Strategic Solutions. “Today’s rollout of CECLution will help them get ready in a timely manner. We’ve worked to provide a user-friendly platform that gives credit unions the flexibility to customize inputs that accommodate different assumptions.”
Based on the widely accepted Weighted Average Remaining Maturity (WARM) method, CECLution offers several benefits, including:
- Capturing and maintaining credit union historical data;
- Automatically integrating economic data;
- Displaying credit union and peer data;
- Enabling fully customizable Q-factors and carve-outs;
- Preserving core assumptions for easy updates; and
- Saving and storing forecasts.
DeBree noted that while CECLution is available to any credit union, it was created for those seeking an independent, fast, and flexible option, rather than an in-house solution. It’s provided on a subscription basis that gives credit unions unlimited access to the platform.
Additional information on CECLution can be found at ceclution.org.
To connect with Catalyst Corporate, please contact the Strategic Link team.