ALLL Qualitative Factors: Justifying in Periods of Low Loss
Feb 11, 2015
The appropriate determination of adjustments for Q factors may be the largest obstacle bankers face in arriving at a defensible and justifiable calculation, particularly in periods of low loss. These factors are inherently subjective and have long been an area of examiner scrutiny if not approached correctly. This whitepaper details items to be aware of in periods of low loss, and offers suggestions to help financial institutions add objectivity and structure in their processes.