The COVID-19 pandemic has ushered in an economic downturn with a speed and severity that we have not seen before. While there isn't enough data yet to fully understand the impact of this pandemic on the economy, how can you plan to adjust your allowances appropriately?
In response to COVID-19 and our clients' needs, we have developed a fast and simple adjustment framework for institutions to use in their incurred loss or CECL calculations. This lightweight framework allows you to quantify a range of loss estimates based on multiple parameters, and to attribute potential losses to specific drivers that can include macroeconomic factors, changes in underlying credit quality, and COVID-19 linked repayment challenges.
Whether you’re already a client of Moody’s Analytics or not, we want to help you by offering a complimentary consultation. Contact your account representative or fill out the form below to request a consultation today.