ALLL Calculation: Validating Balances
Before conducting the ALLL calculation, institutions must ensure that their figures are accurate. Often times, the data required to complete the ALLL calculation must be pulled from various sources, so before beginning the analysis, institutions must make certain that they reconcile balances to the general ledger. Without this step, any inconsistencies in data integrity could be included in the calculation and lead to skewed results.
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Data Gathering Best Practices
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Compiling the Best Data for the Reserve Calculation
Compiling the Best Data for the Reserve Calculation - Download the PDF