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Accolade's new Loan Advisory helps credit unions comply with CECL

Accolade’s offering of their new Loan Advisory is timely. Changes in the calculation of ALLL by FASB and the National Credit Union Administration (NCUA) will transform credit-risk management from a historical measurement approach to a more proactive, preventative approach.

A dynamic ALLL model, properly calibrated, can provide a credit union with needed data to focus its risk management resources on early identification and intervention activities.

Get more details about Accolade’s Loan Advisory.

March 30, 2016 -- Accolade Asset/Liability Advisory Services has introduced a new Loan Advisory, which helps credit unions comply with adjustments to the way ALLL (allowance for loan and lease losses) is calculated under the new CECL (current expected credit loss) rules proposed by FASB (the Financial Accounting Standards Board).

Accolade is the first organization to offer a comprehensive, forward-looking ALLL service tailored to small and mid-sized credit unions that is more than just accounting compliance.

“Accolade’s Loan Advisory provides credit unions comprehensive, forward-looking management for every aspect of their loan business, including ALLL accounting, credit-risk management, and portfolio management,” said Accolade CEO and Board Chairman Joe Ghammashi. “Credit unions can even use the data the service provides to create proactive, targeted marketing opportunities to their members. Overall, our Loan Advisory service is designed to be prospective rather than retrospective to help credit unions plan for future success.”

Member loans make up a significant portion of credit union assets. Making the switch from portfolio-based, historical loss models to forward-looking, loan-level analytics and reporting is critical to adhere to the new rules that are coming, which are ultimately beneficial and will strengthen credit unions overall. High-quality balance sheet analysis and portfolio management is essential, regardless of asset size.

Learn more about the Loan Advisory at www.accoladeadvisory.com and read their recent online articles.