Posted By: Richard_Toombs


For life of loan purposes, how would loans with maturities less than one year impact the CECL analysis?

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Incorporation of life of loan within the ALLL calculation under CECL is not fully known at present; however, based on the recently released Basel consultative document (, we can reasonably anticipate that it will revolve around determining future risk pitfalls for loans. Therefore, if a loan has a shorter maturity there will likely be less risk with regards to economic factors. We are awaiting guidelines for the US market that will give us more insight into these finer details of how to calculate the ALLL under CECL. Until then, we can truly only speculate. We will continue to post updates as they are released.

Emily Bogan
Sr. Risk Management Consultant

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