ALLL Preparations
capital planning
Managing Financial Risk in a Post-Pandemic Environment
The piano can capture a variety of moods, depending on the musician at its seat. But even simple melodies from a finely tuned piano can tell a story. And when a few instruments combine, following the same sheet music – the correct key and time signature – the story’s effect is even stronger. The same... Read more »
Examiners
CFO Corner — “ALLL” about CECL
In this occasional feature, CFOs from financial institutions share their approaches to the ALLL and to the CECL transition, as well as advice for keeping the board informed about related matters. Here, Ronald S. Ohsberg, Senior Executive Vice President, Chief Financial Officer and Treasurer of The Washington Trust Company shares advice from his institution.
CECL Implementation
Discover These CECL Training Resources for Banks and Credit Unions
With implementation of the current expected credit loss model, or CECL, quickly approaching, banks and credit unions can benefit from resources and CECL training to help make the transition in their allowance for loan and lease loss calculations.
ALLL Preparations
Segmenting the Loan Portfolio
he extent of segmentation recommended for a bank or credit union depends on the size of the institution and the nature, scope and risk of its lending activities (new products, significant changes to underwriting, origination in new markets, etc.). Guidance suggests the loan portfolio should be segmented into homogenous pools based on similar attributes, “stratifying the portfolio into segments that have common risk characteristics or sensitivities.” But, be sure that the segmentation reflects the segmentation risk within your institution’s portfolio. Segmentation strategy should be tailored to each institution to address its specific circumstances and needs.
Examiners
Chatting About ALLL with your Regulators
It is no secret that the Allowance for Loan and Lease Losses, ALLL, is still of keen interest to regulators these days. And that is to be expected, based on the not-too-distant past.