Alll Insider Articles

ALLL Insiders are bankers, consultants, credit union professionals, accountants and others who have extensive knowledge in the ALLL calculation. The below articles comprise these experts' recommendations and opinions on various components of the allowance calculation.


CECL is here – Answering your common questions

For financial services companies, June 2016 was a major milestone with the FASB’s issuance of the new accounting standard for loan losses and held-to-maturity debt securities. Designated the current expected ...
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Making sense of CECL

In a July 2016 webinar with more than 220 bankers attending, executives at banks and credit unions spoke up with some of their most pressing questions related to the implementation ...
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Don’t panic about upcoming accounting change

Bankers shouldn't panic about the upcoming CECL standard. What financial institutions can do now is take measured steps to examine their current calculation processes and to communicate with their boards ...
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Improving your ALLL methodology

Bolstering risk management practices is a top concern for many bankers, and strengthening their ALLL methodology plays a big part in that effort. Probability of default/loss given default (PD/LGD) is ...
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FASB’s CECL Model: Navigating the changes

Final deliberations by the FASB on the impairment of financial instruments are drawing to a close, and the board is expected to issue a final standard in 2015. Prior to ...
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Financial instruments: Credit impairment

Since the financial crisis, the FASB has been debating wholesale changes to the U.S. GAAP credit impairment model. The FASB completed the majority of its deliberations in April and expects ...
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Can You See Where Your Portfolio is Going?

Institutions range in sophistication with respect to assessing their portfolios; however, there are several fundamental principles that every institution, regardless of size, should deploy to soundly manage risk. This consists ...
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Getting the most out of Q Factors

Supporting ALLL environmental factors presents a challenge for all financial institutions. Yes, the 2012 Interagency Guidance on ALLL highlights nine specific factors banks should consider, but there is little instruction ...
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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 ...
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Choosing the right peer group

Peer analysis is a tool many banks use to provide benchmarks and context for financial results. Selecting that peer group is critical for the peer analysis to be accurate. Too ...
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