Subjective CECL: Qualitative Adjustments and Forecasts Under the CECL Model
Presenter: Tim McPeak
As institutions approach the transition from the incurred loss model to the current expected credit loss model for estimating the ALLL, there are many questions around the subjective aspects of the new standard. This session will look at the relationship between qualitative adjustments and “reasonable and supportable” forecasts under CECL estimates and key considerations for how institutions will apply them.
Join to learn about:
- Key differences between qualitative adjustments and “reasonable and supportable” forecasts and the role each will play in estimating the allowance under CECL.
- How qualitative adjustments are used in estimating today’s allowance and how this might change under CECL
- Different approaches to apply forecasts within CECL calculations.
- Sourcing and documentation of forecasts and data for supporting qualitative adjustments.