DBRS Morningstar: CECL Implementation Unlikely to Impact Bank Ratings

DBRS, Inc. (DBRS Morningstar) published a commentary highlighting the CECL implementation, effective for all DBRS Morningstar-rated U.S. banks on January 1, 2020. Replacing the incurred loss standard, CECL is a forward-looking impairment approach that requires banks to book expected lifetime losses on the first day of origination. This standard is a change from the current system, which records losses when they become probable that they will occur.