Compiling the Best Data for the Reserve Calculation
Jan 21, 2015
The allowance for loan and lease losses (ALLL) is subject to intense review during federal examinations. As the ALLL is so important throughout the course of an exam, the data collected that drives this calculation is paramount.
This whitepaper discusses most important data collection elements in the ALLL, methods to gather supporting documentation for Q factors in the ASC 450-20 (FAS 5) calculation and how institutions can obtain and extract accurate loan portfolio information.