The effects of the COVID-19 pandemic on the economy are testing the new Current Expected Credit Loss reserving approach. While Day 1 impact and Q1 reserve changes varied widely across the banking industry, driven by portfolio composition, Q2 results are unidirectionally pointing to reserve builds. In our paper,
CECL Build - Is it Enough?, our subject matter experts proposed a triangulation methodology to estimate a range for CECL estimates. Using a peer group composed of 14 banks, they test the approach to establish a range of estimates for Q2 2020 cohort results and suggest a useful tool for an effective challenge.
Join this webinar for a live Q&A session with the authors of the research Laurent Birade and Philip Lai, moderated by Anna Krayn.
Speakers:
Anna Krayn, Managing Director, Moody's Analytics
Laurent Birade, Senior Director, Moody's Analytics
Phillip Lai, Associate Director, Moody's Analytics