Allowance Calculation for Loan and Lease Losses

Prepare for a smooth transition to CECL while automating your current ALLL calculation with our CECL ready solution that also includes a scalable credit datamart.
The ALLL solution is an integrated yet modular solution to measure, monitor, manage and report a bank’s Allowance for Loan and Lease Losses. Designed to be audit and examination-ready, the solution meets or exceeds all regulatory requirements and is equipped with a powerful insights module to help C-Level executives with strategic business decisions. The solution offers support for both Historical Loss Rate and Migration Analysis methods. It is also compliant with multiple CECL models.

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Calculation Methodologies

This method uses historical loss information to arrive at historical loss rates. The current period loss rate is estimated by taking a weighted average of rolling period historical loss rates. Adjustments for current conditions are done using Q&E Factors.

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Highlights of the Solution

Integrated Workflow Management

Integrated Workflow Management

A configurable, workflow-based solution with support for Data Review, Data Adjustments, ALLL Calculations and Closure.

End-to-End Process

End-to-End Process

Complete auditability of the end-to-end process. Integrated solution with features like Data Upload, Collateral Management, Account Classification and more.

Reports and Disclosures

Reports and Disclosures

Pre-packaged regulatory and management reports with the capability for customized reports based on your bank’s requirement.

Integrated Document Repository

Integrated Document Repository

Integrated document repository for instant access to all reference documents.

Flexible Methodology

Flexible Methodology

Scenario management, configurable look-back period and flexible methodology selection for back-testing.

Q&E Adjustments

Q&E Adjustments

Prepackaged 9 recommended Q&E Factors, configurable based on business needs. Adjust Loss Rates based on management judgement of lending policies, industry trends, bank policies, etc.

Create Risk Grades and Cohorts

Create Risk Grades and Cohorts

Flexible data definitions and categorizations to create risk grades & cohorts.

FAS 114 Accounting

FAS 114 Accounting

Efficient collateral management and payment schedule generation integrated into FAS 114 accounting.

Lays Foundation for CECL

Lays Foundation for CECL

Lays the foundation for CECL from both data and calculation perspective.

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Transition to CECL

CECL Calculation Engine

CECL Calculation Engine

Automated, process oriented, accurate estimates using CECL models as per the proposed FASB solution methodologies.

External Data Analysis

External Data Analysis

Analyze peer data and macroeconomic factors to predict the impact on expected loss rates.

Q&E Factor Analyzer

Q&E Factor Analyzer

Qualification of Q&E factors to facilitate prudent, reasonable and supportable forecats.

Custom Dimension Architecture

Custom Dimension Architecture

Configurable segment and cohort definition management system with integrated features to reclassify data as per CECL draft guidlines.

CECL Data Model

CECL Data Model

Comprehensive data model to store granular data custom built for community banks.

Reports and Executive Dashboards

Reports and Executive Dashboards

Automated, process oriented, auditable reporting for management and disclosures.

Our Knowledge Hub

Whitepaper 18 Oct 2018

Application and comparison of CECL Methodolog...

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Regulatory Updates 06 Sep 2017

Frequently Asked Questions on the New Account...

Whitepaper 12 Aug 2017

Stress Testing

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