Nov 20, 2014 16:27
In preparing for the allowance for loan and lease losses (ALLL) calculation in 2015, bankers have a lot on their plates. The ALLL has received significantly more attention in the past few years, and the trend of examiner scrutiny does not appear to be letting up. If anything, regulatory bodies will be focusing even more on the allowance calculation in 2015 as institutions switch from an incurred loss model to an expected loss model.
That said, if institutions are heedful of certain process improvements and incorporate them into their methodologies, they will be in a more defensible position when the examiners come knocking. In particular, institutions should focus on a few overarching princ... [More]