CMS Sept 2022

Internal Use Only

What is CECL? • Focuses on estimating losses over life of assets • Previous method was based on incurred loss

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Internal Use Only

What is CECL? • Applies to all financial instruments carried at amortized cost • HFI & HTM debt securities • Trade receivables • Reinsurance recoverables • Receivables related to repurchase agreements & securities lending agreements • Lessor's net investments in leases • Off-balance-sheet credit exposures • Loan commitments, standby letters of credit & financial guarantees

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