ALLL-What to Look for in the ALLL Analysis

Allowance for Loan and Lease Losses is a critical element in a Bank’s risk management processes and one in which its regulators and financial auditors assess and measure regularly. This presentation discusses the regulatory background behind the allowance process, an overview of existing allowance methodologies, what we see in the marketplace, what the future holds relative to a new methodology coming in 2018 and how to prepare now for the change.

Covered Topics

  • Regulatory Expectations
  • Allowance Modeling Approaches – The Present
  • Precision versus Transparency
  • Allowance Modeling Approaches – The Future
  • Overview of CECL
  • Key Concepts and Considerations
  • How to Prepare