Finance and Financial Management Commons^™

Cecl For Financial Institutions: An Analysis Of The Scale Method, Jared Stauffer

Department of Agricultural Economics: Dissertations, Theses, and Student Research

Released by the Federal Reserve Bank in June of 2021, the Scaled CECL Allowance for Loss Estimator (SCALE) is meant to assist community banks implementing the new Current Expected Credit Loss (CECL) accounting standard. The efficacy of this method is important to community banks and financial institutions considering the use of SCALE to estimate expected future losses. Using quarterly Call Report data, two separate analyses of the SCALE method are conducted. First for qualifying community banks and second for Farm Credit Services of America, an agricultural credit association within the Farm Credit System. For the first quarter of 2022, both …