ALLL / historical loss

historical loss

CECL
The Coronavirus, ALLL, and Liquidity: Assessments and Expectations
In January 2020, most SEC-filing financial institutions began operating under the new current expected credit loss (CECL) accounting standard. While loss provisions were expected to increase due to the new standard, the onset of the economic impact of the coronavirus pandemic also created new implications for financial institutions’ reserves. Reports from the first quarter revealed... Read more »

historical loss
Measures of Loss
When calculating the FAS 5 portion of the ALLL, various methodologies can be used. These consist of peer analysis (for financial institutions that may still be in de novo status), historical loss, migration analysis and PD/LGD.