For all institutions, early application of the CECL methodology is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Until the new standard becomes effective, current U.S. generally accepted accounting principles (GAAP) along with related information on the allowance for loan and lease losses (ALLL) applies.
CECL Effective Dates
| Entity Type | CECL Effective Date |
|---|---|
| SEC filers, excluding entities eligible to be smaller reporting companies (SRCs) | Fiscal years beginning after 12/15/2019, including interim periods within those fiscal years |
| All other entities, including SRCs | Fiscal years beginning after 12/15/2022, including interim periods within those fiscal years |
Supervisory Resources
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.
- Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023) describes the measurement of expected credit losses under the CECL methodology and the accounting for impairment on available-for-sale debt securities in accordance with GAAP; the design, documentation, and validation of expected credit loss estimation processes, including the internal controls over these processes; the maintenance of appropriate allowance for credit losses (ACLs); the responsibilities of boards of directors and management; and examiner reviews of ACLs
- Joint Statement on the New Accounting Standard on Financial Instruments — Credit Losses provides information about Accounting Standards Update (ASU) No 2016-13, which introduces CECL
- Frequently Asked Questions address the application of CECL and related useful information
- For questions concerning the CECL accounting standard, please contact CECL@fdic.gov
Videos/Webcasts/Teleconferences
Informational videos and recordings of prior webcasts and teleconferences.
Current Expected Credit Losses (video for Bankers and Directors)
Interagency Webcasts:
To access the following interagency webinars, including related presentation materials, for community banks, including related presentation materials, click on the applicable webinar below and follow the instructions under Presentation Materials.
- Applying Model Risk Management to Current Expected Credit Losses (CECL) Models at Large Banks webinar from September 3, 2019
- Current Expected Credit Losses (CECL) Weighted-Average Remaining Maturity (WARM) Method webinar from April 11, 2019
- Current Expected Credit Losses Methodology Q&A Webinar for Community Bankers webinar from July 30, 2018
- Implementation Examples for the Current Expected Credit Losses Methodology (CECL) webinar from February 27, 2018