According to a survey conducted by Deloitte, the new accounting standards under the expected credit losses (CECL) standard will have a major impact on all financial institutions (specifically banks) and applicable asset portfolios, such as loans, leases and debt securities.

In response to the anticipated changes, affected institutions will need to assess their governance and risk management frameworks, credit models, data requirements, accounting and operational policies and procedures, processes, controls and IT systems to plan for successful implementation of the new requirements, according to Deloitte.