VBC will help you accurately assess your current expected credit loss (“CECL”) options for your particular solution. This involves understanding how to best leverage your historical data to efficiently calculate your reserve and provide the requisite reports and disclosures. Institutions should balance the need for an accounting number while also considering the potential of the full integration of credit risk into earnings and capital decision making.
VBC will provide full service CECL modeling either in aggregate or at the loan level. Utilizing loan core system downloads, the model will calculate the reserve using client loss data calibrated, where necessary, to historic institution-specific or national averages.
Analysis and Disclosures
Outputs from the CECL model will include accounting, ALCO, credit and all necessary regulatory disclosures as well as clear exposition of the process and underlying assumptions. Reports will not only include required disclosures but also any client customized requests by any field category available.
CRE and Credit Stress Testing
Utilizing the loan level detail accompanied by all credit risk scoring data, the system will run any specified risk scenario. Thus, providing customized credit stressed reports and analysis. These stress tests can be fully integrated with the institution’s loan portfolio and balance sheet.
VBC can assist with the transition to CECL life-of-loan modeling requirements. Our services include assessing appropriateness of methodologies, evaluating core system data capabilities and assisting with either Excel-based model development or software-based implementation.