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ALLL Qualitative Factors: Justifying in Periods of Low Loss

Within the ALLL, the appropriate determination of adjustments for qualitative and environmental factors may be the biggest challenge in arriving at a defensible and justifiable calculation, particularly in periods of low loss. These factors are inherently subjective in nature, and have long been an area of examiner scrutiny if not approached correctly.

Watch to learn:

  • Qualitative factors' inherent subjectivity and ways to add objectivity
  • Best practices for justifying assumptions in times of low loss
  • Regulatory expectations
  • What other banks' qualitative factors were like this year