The Federal Reserve is set to incorporate a new accounting standard. The Scaled CECL Allowance for Losses Estimator, SCALE, will be introduced into the US community banking system.
The decision will help smaller banks manage the difficult task of complying with the new current expected credit loss (CECL) accounting standard.
In a media release the Fed says spreadsheet-based tool draws on publicly available regulatory and industry data to aid community banks with assets of less than $1 billion in calculating their CECL allowances.
"The SCALE tool responds directly to one of the consistent concerns I've heard from across community banks—navigating the complexity of complying with CECL. I'm confident smaller banks will find this tool greatly simplifies that work and provides a prac...
