Presentation slides form our webinar examining, consumer credit conditions under scenarios for Credit Unions.
Learn to differentiate C&I, CRE, retail, and securities. Choose approaches at the right level of flexibility and sophistication. Apply model-free solutions based on historical internal or industry data.
RAROC and RORAC solutions that account for allowance and forward-looking IFRS 9 / CECL measures in return and risk.
November 2019
Pdf
Amnon Levy, Pierre Xu
Having achieved the longest expansion in history, what's next for the US economy? We will identify current downside – and upside – risks that could pull the economy into recession or propel it forward. We identify short, medium, and long-term risk factors and introduce a methodology for incorporating these risks into a globally consistent framework. While no model can forecast the future with certainty, scenarios with mathematically derived probability weights can manage these risks and lead to better, faster decisions.
Presented at the Credit Union National Association, Ohio Credit Union League
Presented at the Credit Union National Association, Ohio Credit Union League
Presented at the Credit Union National Association, Ohio Credit Union League
The new CECL accounting standard requires institutions to incorporate forward-looking information in their estimate of expected lifetime losses.
Presented at the National Credit Union Management Association Conference, July 2019. Agenda: 1. Regional Economic Performance at a Glance 2. Near Term Risks 3. What to Expect from CECL?
Industry data can be leveraged for CECL when lender-specific data is not complete.
Starting in 2020, the Current Expected Credit Loss (CECL) accounting standard will require financial institutions to reserve for estimated lifetime losses on loans and leases as soon as they are originated. This presentation will provide analytical insight and practical recommendations to help lenders strategize and effectively prepare for the new rule.
Top-down approach for small institutions, small and/or young portfolios that produces scenario-conditioned lifetime net losses at different evaluation dates.
How to Leverage R&S Economic Forecasts in CECL? In this presentation we demonstrate how to incorporate scenarios effectively.
CECL Disclosures – Required and Beyond
CECL will require institutions to incorporate macroeconomic forecasts formally into their loss allowance estimates for the first time. There are a number of ways in which this can be achieved as the CECL guidelines don't specify any one particular approach. In this presentation, we discuss some of the options that institutions have for incorporating economic forecasts into their expected loan loss reserve calculations. We discuss the benefits and costs of each approach and provide practical recommendations based on institution size and complexity. We also show a simple solution for calculating the lifetime expected losses for consumer loans for different products.
Challenges in CECL Implementation
July 2018
Pdf
Robby Holditch
Simple But Not Simpler: Day 1 Modeling Approaches. This presentation is a review of simple approaches available to community banks on the road to their CECL journey.
The “Easiest” Implementation – Why There Is No Easy Button
June 2018
Pdf
Robby Holditch
This presentation discusses the CECL requirement of reasonable and supportable forecasts. We discuss what makes an economic scenario reasonable and supportable and discusses structural forecast model methodology. We also compare customized, standard and off-the-shelf scenarios and examine forecasting credit losses.
Our subject matter experts, Chris Henkel, Senior Director, and Anna Krayn, Senior Director, discuss critical steps in meeting the new CECL standard.
Under CECL and IFRS 9, forecasting expected credit losses will be paramount. Join Moody's Analytics experts as they discuss our macro and regional forecasting. Learn how our full suite of scenario capabilities for CECL, IFRS 9, BAU, and stress testing can help your firm meet this essential requirement.
In this presentation, Emil Lopez and Olivier Brucker from Moody's Analytics, demonstrates how the Moody's Analytics Credit Loss and Impairment Analysis suite helps financial institutions overcome challenges with CECL and implement best-practice allowance processes.
In this presentation, Anna Krayn and Masha Muzyka discuss the importance of accounting for risk differentiation and rank ordering for pass-rated loans, common flaws of risk rating systems and the potential financial impact on ALLL.
In this presentation, learn more about ECL quantification tools to support CECL implementation across all major asset classes, including dual-risk rating models (PD/LGD), credit cycle adjustment and scenario conditioning models, segment-level loss rate models and discounted cash flow (DCF) and non-DCF methodologies.
In this webinar, Cris deRitis, Senior Director from Moody's Analytics, demonstrates how to leverage econometrically derived, forward-looking scenarios to assess life-time losses for CECL.
The FASB's new impairment standards won't take effect until 2020, but institutions should start planning now. This presentation outlines key considerations for early CECL preparation, including: main challenges; expectations of auditors, regulators, and investors; planning in firms of varying sizes; and how to get started.
In this presentation, Irina Korablev, Senior Director and Deniz Tudor, Director will discuss various tools that can capture economic, loan-level, and cohort-level data across several asset classes, which can be used for forecasting credit losses and benchmarking internal models.
Our experts discuss methodologies for calculating losses, and explain how to establish and defend reasonable and supportable forecasts, connect the allowance for credit loss estimate to key risk functions, and analyze the impact to reserves and your business.
August 2017
Pdf
Jan Larsen, Tanya Roosta
In this presentation, our experts discussed common CECL considerations for structured credit and answer key questions on how to provide CECL estimates for structured credit.
In this webinar, our experts discuss the important considerations in the modeling and implementation of the CECL standard for retail portfolios. Learn more about loan-level modeling approaches that can be used to forecast credit losses for retail portfolios and how to leverage existing risk measurement practices.
