Using your best judgment – Back up qualitative decisions per loss allowance policy

Description

Abstract: Bankers setting allowances for loan and lease losses are paying special attention to the documentation that supports the decisions they make. For the past year or so, financial institutions have been grappling with the new accounting requirements in the Interagency Policy Statement on the Allowance for Loan and Lease Losses (ALLL). Here’s what you need to know about the changes.