ALLL / CECL Engagements
CEIS’ looks to leverage on the familiarity with the portfolio thereby offering services that are more efficient and economic. Briefly, the professional services also include stress testing, validation of ALLL methodology, process review, concentration analysis, and other customized requests as well as due diligence on targeted portfolios.
- ALLL / CECL – CEIS recognizes that many financial institutions are in transition between ALLL and CECL. Because of this, CEIS will provide validation services for either ALLL or CECL as follows:
- Validation of ALLL Methodology – CEIS assesses compliance with regulatory requirements (including the 2006 Interagency Policy Statement on the Allowance for Loan and Lease Losses and the 2011 Supervisory Guidance on Model Risk Management), as well as GAAP requirements (ASC 310 and ASC 450-20).
- CECL Validation – CEIS’ validation will be on the CECL model (Expected Loss and the process for the establishment of the ACL, incorporating the relevant regulatory requirements of ASU 2016-13 (Financial Instruments – Credit Losses) as well as recent updates and clarifications.
To learn more about our ECL Engagements, ALLL Methodology Validation & Refinement service please contact us.
Concentration Analysis is performed on a standalone basis or combined with CEIS’ Loan Review and/or Stress Testing activities.