Credit Evaluation School eBook

Third Paragraph Address major findings. If none identified, then address acceptability of credit and loan administration practices.

Fourth Paragraph The level and trend of the Allowance for Credit Losses (ACL) as well as the methodology associated with it. • New accounting standard introduces the current expected credit losses methodology (CECL) for estimating allowances for credit losses (effective January 1, 2023). • CECL requires financial institutions and other covered entities to recognize lifetime expected credit losses for a wide range of financial assets based not only on past events and current conditions, but also on reasonable and supportable forecasts.