Description

Increasing delinquency rates elevate expected credit losses under the CECL model, requiring higher loan loss reserves and potentially diminishing bank profitability and capital. Ivan Cilik, Partner at Baker Tilly, and Sean Statz, Director at Baker Tilly, join this segment to discuss the implications of rising delinquency rates on the CECL model. This includes discussion of delinquency rates, commercial real estate considerations, assumptions included within the CECL model, as well as disclosures, communications, and monitoring.

Target Audience

CPAs and other financial professionals seeking education on the topic.

Course Objectives

• Identify how recent changes in commercial real estate have impacted delinquency rates

• Recognize how increasing delinquency rates impact the CECL model

• Identify the key assumptions used within the CECL model

• Recognize the importance of data quality and strong controls with respect to the CECL model

Subjects

• Rising delinquency rates

• Disclosures

• Commercial Real Estate considerations