Roadmap to CECL

Prepare Your Bank For the Transition to CECL – “Road Map to CECL” Service Shows You How. For a reasonable fixed price and minimal impact on your bank’s resources, the prudent choice is to engage Argus to perform an inventory of your credit data resources, assess your current ALLL methodology, identify gaps from best practices and outline short and long term actions you can take to improve your bank’s practices. After an action plan is established, you will be much better prepared to look at how the new CECL rules can be effectively implemented.
The Road Map to CECL Service is an optional value add that builds on the foundation of Rapid Gap Analysis Process.

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Features

Share an Overview of CECL Requirement

Share an Overview of CECL Requirement

Our experts share an overview of the CECL requirements and latest updates with you.

Review Calculations & Methodology

Review Calculations & Methodology

We will review your current ALLL calculation and methodology in comparison to industry best practices & regulatory expectations.

Loan Portfolio Types

Loan Portfolio Types

We will outline which CECL methodologies are best suited for each of your loan portfolio types.

Calculation Methodology

Calculation Methodology

Our analysts will explain how to create economic forecasts under each calculation methodology.

Project Framework & Timeframe

Project Framework & Timeframe

We will recommend a project framework and timeframe for CECL implementation for your bank based upon portfolio type, methodology chosen and data readiness.

Leverage CECL Investments

Leverage CECL Investments

Derive benefits from CECL by learning how to leverage CECL investments in multiple ways.

Data Assessment
(R-GAP)

Is your bank’s loan portfolio data ready to support regulatory needs for CECL, Stress Testing and Concentration Management?
The Rapid Gap Analysis Process (R-GAP) tells you what you must know to fix your credit data today. A proven expert third-party Credit Data Assessment Service, R-GAP is a comprehensive review of your bank’s current Credit Portfolio Data Management procedures and tools.
Before you invest in an automated CECL/ALLL or Credit Data Warehouse, know your gaps and follow an action plan to prepare efficiently and effectively.
For all banks, the game is changing, driven by regulatory demands for more data, reporting, disclosures and statistical modeling. The new CECL guidelines for ALLL, expectations around Stress Testing and Capital Planning and a new focus on concentration management, all require more loan portfolio data with faster turnaround. Spreadsheets and manual calculations will no longer meet your bank’s needs. Argus data experts can assist your bank to proactively prepare for heightened regulatory expectations by ensuring that your current credit data capabilities are sufficient to address CECL and other reporting and analytical needs. When the time comes for increased regulatory scrutiny, your bank will be ready

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Features

Data Management vs. Industry Practices

Data Management vs. Industry Practices

Gap Analysis of your bank’s current credit data management vs. industry best practices.

Credit Data Collection

Credit Data Collection

Review of current credit data collection processes as well as status of credit data accessibility and data integrity.

Action Plan

Action Plan

Custom Action Plan to address efficiency and automation.

Guidance on Data Needs

Guidance on Data Needs

Guidance on data needs in preparation for eventual CECL and Dodd Frank Act Stress Testing (DFAST) needs.

Stress Testing

Industry Leading Stress Testing approach which meets or exceeds all regulatory expectations for stress testing.
We have been delivering industry-leading outsourced stress testing analysis and reporting to banks since 2008. Our process and approach has been well received by state banking organizations, the OCC, FDIC, FFIEC and State Bank Examiners. If your institution lacks the data and resources to perform bottom-up stress testing, our top-down capital stress testing model provides a highly effective alternative to engage in industry-recognized stress testing best practices. We successfully link concentration analysis and stress scenarios based on local market credit conditions to create meaningful, actionable results for your bank.
Argus can save your bank time and effort, while meeting or exceeding your management, board and regulatory expectations for stress testing.

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Features

Stress Testing

Stress Testing

Combines both “ Bottom-Up ” concentration stress testing & “ Top-Down ” balance sheet capital stress testing.

Creation of Loan Data

Creation of Loan Data

Includes assistance with creation of loan data file and a review of loan coding standards.

Identifies Concentrations

Identifies Concentrations

Identifies concentrations that make up 60-80% of your portfolio.

Stress Test Scenarios

Stress Test Scenarios

Determines appropriate stress test scenarios & parameters.

Identifies Missing Data

Identifies Missing Data

Identifies missing data based upon bank concentration & stress model requirements.