ALLL

Allowance for loan and lease losses

Get support for your ALLL policies and procedures

Financial institutions face intense scrutiny of its allowance for loan and lease losses (ALLL) policies and procedures, but might only have minimal direction on critical calculations and adjustments. The Crowe credit risk services group has extensive experience helping financial institutions of all sizes maintain compliance with ALLL interagency guidance and relevant Financial Accounting Standards Board standards, including Accounting Standards Codification (ASC) 450-20-30 and ASC 310-10-35.

Crowe offers an industry-driven ALLL solution that addresses five areas of critical concern:

  • Documentation: comprehensive policies and procedures
  • Methodology: portfolio segmentation based on homogenous risk characteristics
  • Qualitative factors: quantified and rationalized
  • Data and systems: accurate and transparent
  • Reporting: sufficient, concise information for management and the board

Crowe ALLL solution features

Core lending systems integration
Eliminates inefficient manual data gathering and error-prone data entry
Innovative technology
Creates audit trails and documentation of ALLL decisions
Networked solution
Connects with core systems, FDIC Call Reports, and the federal economic database
Banking applications
Integrates seamlessly with other elements of an active credit portfolio management system
Comprehensive platform
Demonstrates a consistent, repeatable process to board and agencies' examiners
Core lending systems integration
Eliminates inefficient manual data gathering and error-prone data entry
Innovative technology
Creates audit trails and documentation of ALLL decisions
Networked solution
Connects with core systems, FDIC Call Reports, and the federal economic database
Banking applications
Integrates seamlessly with other elements of an active credit portfolio management system
Comprehensive platform
Demonstrates a consistent, repeatable process to board and agencies' examiners

Regulator expectations

Crowe credit risk professionals have a comprehensive understanding of ALLL calculation, including:

  • Periodic validation of allowance models
  • 2001 and 2006 policy statement requirements
  • Requirement to be performed by an independent party
  • CECL model
  • Prohibition of external auditors from performing under independence requirements (for institutions with more than $500 million in assets)

Contact us

Reach out to a Crowe banking professional to help you with ALLL calculations. Contact us now.
keever-dave-225
Dave Keever
Principal