Backtesting Your ALLL Methodology

Jan 21, 2015

Backtesting serves as a way to measure the effectiveness of a bank or credit union's ALLL methodology. It essentially consists of comparing actual outcomes to forecasted results. For institutions looking to increase the defensibility of their ALLL, backtesting can provide an extra line of defense. This webinar discusses what questions banks and credit unions should ask to assess model accuracy and provides an overview of different backtesting techniques at the portfolio and concentration level. Download the slides below.

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