Community Bank CECL Service

Preparing for CECL? Start here.

The Current Expected Credit Loss (CECL) methodology is a major departure from the way the ALLL has been calculated in the past. CECL has  new rules regarding the need for robust data collection methods.

Many community banks know they should start collecting data, but are unsure how to begin. RMA gets you started with our members-only service, RMA's Community Bank CECL Service. The Service was developed with RMA's Community Bank Council to meet the need for capturing, storing, and reporting on loan level loss information.  

The Service helps you identify the key loan loss information data fields you need to start collecting, while helping you determine how your bank’s data compares to that of peer banks. 

Considerable thought was given to the data fields collected within the Service, and are based upon the CECL methodology requirements and the Community Bank Council’s understanding of the data available at most community banks. As the Service is interactive and driven by participants, we expect it to develop over time as the needs of users evolve.

RMA's community bank members (banks with assets under approximately $10B) are eligible to join the service. When joining, participants submit at minimum three years’ worth of historical data, i.e., anonymous loan loss information for U.S. loans in non-accrual status with an amount outstanding at default of $1.00 or greater. All of the submitted information is aggregated and participating banks receive the entire database of disguised loan level data.

Why RMA's service is the smart way to start:

  • Relevancy: Our staff has worked closely with the RMA Community Bank Council to ensure that this loan loss database is tailored to the needs of community banks like yours.
  • Affordability: The cost to join the service is $500 per year, substantially below any market rate for similar offerings, and entitles you to two updated databases annually.
  • History: RMA has been, and will always be, a member-centric organization; one with a strong track-record of providing practical solutions to credit risk issues and establishing industry-wide sound standards. 
  • Care and Cybersecurity: We are stewards of your data. Accordingly, our service places a premium on confidentiality and the secure handling of your data:
    • No identifying information is collected about your borrowers.
    • All observations are identified only by masked identification numbers that you submit. (For more information, please see our FAQs.)
    • The data in this study is exchanged through a website hosted on a SOC-compliant server. (For more information, please see our Data Security Measures.)
    • Rules are in place such that each reported data point has sufficient diversity and critical mass to further ensure borrower and bank anonymity.

Why your community bank should participate:

  • Help you identify and focus on the key loan loss information data fields you need to start collecting today.
  • Determine how your bank's data compares to that of peer banks.
  • Use the data to extract pools of loans where there is limited, or no loss history, to determine loss behavior for similar loan pools. 
  • Develop vintage analysis of portfolio.
  • Better segment your portfolio for concentration management.
  • Neutral as to what loan system, of ALLL system you use.
  • Be better able to identify factors leading to default.
  • Support post mortem analysis of problem loans with more detailed data.
  • Aid in the development of a probability of default and loss given default model.
  • Ultimately, strengthen your loan loss reporting process.

For more information, view the Community Bank CECL Service brochure here.

View a short video for additional information.

Important Materials

Please review the Terms of Use. The first time you access the Service in RMA University, you will be required to accept the Terms of Use.

You can view the template in which you will enter your bank’s data. For details regarding using the template, please see the CECL Service Data Import document. The details, explanations and examples for the data that is being collected in the template can be found in the Definitions and Ratings Systems and Spreadsheet Column Definitions.

More information about the Service can be found in the Minimum Technical Requirements and the Data Security Measures.

For more details about RMA's Community Bank CECL Service, please read our FAQs.

To join the service, start by completing the enrollment form.

RMA has compiled a helpful list of articles, white papers, blog posts, and courses that provide information about CECL on our website. 

If you have any questions, or if you are interested in participating, please send an email to cecl@rmahq.org ; include the contact information for the person at your bank who should receive further information about this service.