More ALLL Coverage

Board meeting

Do This, Not That: Explaining CECL to Your Board

Explaining CECL and your institution’s transition progress to your board of directors is important. In a recent webinar, Abrigo experts ...
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CECL’S Impact on Your ALM Modeling

CECL’S Impact on Your ALM Modeling

With CECL's need for financial institutions to look at a more forecasted approach to determine credit reserves, it makes sense ...
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Will Financial Institutions’ CECL Data Be Sufficient?

Will Financial Institutions’ CECL Data Be Sufficient?

Are financial institutions making enough progress in their CECL data collection efforts? How much data are they gathering for CECL, ...
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cecl transition relief

FASB Approves CECL Fair Value Option Change

Easing the transition to the current expected credit loss standard, or CECL, was the goal of a measure approved by ...
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FASB Rejects Regional Bank Proposal, Reverses Course on Vintage Disclosures

FASB Rejects Regional Bank Proposal, Reverses Course on Vintage Disclosures

The Financial Accounting Standards Board (FASB) made two decisions that will limit changes to the CECL standard ahead of implementation ...
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CECL: Survey Results Show What Institutions Are Doing Now

CECL: Survey Results Show What Institutions Are Doing Now

How prepared are financial institutions when it comes to the current expected credit loss, or CECL? Find out Tuesday during ...
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Latest Resources

The 7-Step Guide to an Effective, Dynamic ALCO

The 7-Step Guide to an Effective, Dynamic ALCO

The asset/liability management process at a financial institution should not be limited to one that “checks the box” of meeting regulatory requirements. Rather, institutions and Asset/Liability Management Committees (ALCOs) with a dynamic ALCO process are able to inform decisions related to strategy as well as risk management.
Audit Expectations for a CECL Practice

Audit Expectations for a CECL Practice

The AICPA CECL auditing subgroup is meeting regularly to set industry-wide standards for how CECL will be approached from an audit and assurance perspective. Early takeaways from the group’s work have indicated a clear bias toward practices that produce a sound, defensible allowance for credit losses as well as model evaluation efforts that ensure internal controls and transparency.
Auditors vs. Regulators

CECL: Synthesizing Complexities to a Board

The current expected credit loss standard, or CECL, has been called one of the biggest changes ever to accounting for financial institutions, and every bank and credit union in the U.S. must assess CECL’s impact on its processes and on the allowance. With the change comes new roadblocks, one of which is explaining the complexities of CECL to a board in a straight-forward and clear manner.

Tip Of The Day

The Discounted Cash Flow technique is not required, but it is the most defensible approach to estimate the collectibility of future cash flows due to its highly auditable framework and methodological alignment with CECL.

Poll

What type of data do you anticipate leveraging for your CECL calculation?

  • 1-5 years of detailed loan level data
  • 5+ years of detailed loan level data
  • 1-5 years of aggregate (pool level) data
  • 5+ years of aggregate (pool level) data
  • I don't know the difference

ALLL.com Insiders

CFO Corner -- “ALLL” about CECL

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 ...
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The biggest initial impact of CECL on financial institutions

The biggest initial impact of CECL on financial institutions

Most financial institutions understand CECL, and more specifically applying the CECL model to their loan portfolio, represents the most significant ...
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Validating ALLL models under CECL – What might change?

Validating ALLL models under CECL – What might change?

What does model validation mean for the allowance for loan and lease losses and what will it mean under CECL? ...
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