Migration Analysis: The Way Forward for an Effective ALLL
Jan 21, 2015
Migration analysis proves to be one of the more comprehensive methods used to determine historical loss when evaluating pools of loans. Although implementation can be difficult for institutions who do not have advanced data processes, more and more banks and credit unions are beginning to make the switch to this methodology. This whitepaper covers: why some institutions chose not to use migration analysis, considerations for why it might improve your ALLL calculation and steps for how an institution can begin implementation.