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Auditing Your ALLL Estimate
Gary Deutsch

Guidance through developing, performing and auditing the ALLL estimate to assure that your institution and board are prepared to fulfill this vital function and meet regulatory expectations

Price: $299.00
Auditing Your ALLL Estimate

Lower loan losses to date and a generally more stable economy are reasons why memories of the last recession may be fading. However, financial institutions cannot lose focus on the importance of the allowance for loan and lease losses (ALLL) estimate. Loan risks are still present and regulatory expectations for your ALLL Estimate have not abated. For instance, the Fed has begun to raise interest rates and indications are that the Fed will push interest rates higher. Are your borrowers prepared for the added borrowing costs? Commercial real estate values are improving in many areas, but the economics supporting retail and office projects are still fragile. Lenders, where there is a regional dependence on the oil market, may need to look at the direct impact of depressed oil price on some loans and the impact on their region generally if employees and other businesses are affected. Multi-family projects that are spreading throughout the country may be reaching saturation. Are these issues being adequately addressed when developing your institution’s ALLL estimate? Are inherent losses in your commercial real estate loans recognized in your ALLL estimate?

Based on the credit losses many banks experienced after the Great Recession, financial institutions cannot afford to let this critical loss accrual go onto their institution's balance sheet without proper scrutiny. The risk of safety and soundness violations and officer and director liability remains significant even in an improving economy. And since regulatory guidance allows for judgment in the process, Internal Audit needs to help the institution by evaluating the soundness and consistency of the ALLL estimate prepared for the board's approval.

Please join Gary Deutsch as he guides you through developing, performing and auditing the ALLL estimate to assure that your institution and board are prepared to fulfill this vital function and meet regulatory expectations for your ALLL estimate.

WHAT YOU'LL LEARN

This webinar will provide the keys to auditing your ALLL estimate, including:

  • Review of the data collection, analysis and judgmental process required to prepare an ALLL estimate
  • Discussion of alternative estimation methodologies and their impact on the ALLL estimate
  • Methods for conducting a risk-based audit of the ALLL
  • Future audit impact of the FASB's proposed current expected credit loss (CECL) on data collection and analysis
Price: $299.00

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PRESENTER

Gary Deutsch

WHAT'S INCLUDED

  • Access your training anywhere, with a computer, tablet or smartphone.
  • Engaging and up-to-date training to support your career and your organization.
  • Handouts you can distribute to your board and staff.