CECL analysis & narrative template

CECL is an active discussion topic between banking institutions and their Accountants and Auditors. 

Accountants and Auditors are looking for a written Narrative that explains how the institution determined the appropriate the amount of loan loss reserves they should carry

Specifically, they are looking for a details on how you institution’s calculated your historical loss trends, and what  Qualitative Factor adjustments you used to set your reserves percentages. 

With this consultation we will assist you in developing a template to present your CECL Analysis and conclusions. The template will provide a written narrative that will include the information and logic used to address changes and trends in your historical loss ratios, predict future losses, and to make appropriate adjustments to your Q factors to set aside an appropriate amount of loan loss reserves to cover those losses. This  Narrative template will then be used for all future Reserve Analysis  Presentations.