Provisions & Reserves

As the business cycle evolves, how do you determine adequate provisions for credit losses in the performing portfolio? How accurate was your provision allocation through the last cycle? How prepared are you for the ultimate adoption of the CECL model? Providing defensible ALLL calculations will require financial institutions to implement a comprehensive process to calculate the reserve as well as the current and projected forecast driving the estimate.  

 

Today’s best practice relies on expanding your vision of economic and portfolio events with external data and analytics on your borrowers and markets.

Common Challenges with Provisions & Reserves