NCUA releases simplified CECL tool for small credit unions

The National Credit Union Administration released a new tool to help small credit unions comply with the Financial Accounting Standards Board’s accounting standard on current expected credit loss, or CECL, which goes into effect for most credit unions at the start of 2023. The CECL Tool is intended for use by credit unions with under $100 million in assets, although it could be used by larger credit unions based on the discretion of their management and auditors.

“The Simplified CECL Tool gives small credit unions a valuable resource to help them implement CECL without having to hire an econometrician or to use complicated models,” NCUA Chairman Todd M. Harper said. “With an uncertain economic picture, this tool provides relief for smaller credit unions, so they can focus on serving their members and communities. The NCUA will continue to provide CECL-related information on our website, and our staff is available to assist credit unions with using the tool and with other CECL-related questions.”

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