Tag: GAAP

A Pitfall of CECL on Bank Performance

Bank Loan Structuring

We believe that CECL will inadvertently force some community banks to make suboptimal lending decisions and accelerate community bank consolidation, while, at the same time, allow others to differentiate their business models.  In this article, we consider some of the secondary effects of CECL on community bank CRE lending decisions and specifically the average life of newly originated loans.

 

CECL Summarized

 

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